2002 (12) TMI 60 - HC - Income Tax

Land Acquisition - 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law and had valid materials to hold that the interest amount received by the assessee in respect of additional compensation awarded by court, should be assessed on accrual basis only, and, accordingly, the interest due for the year alone should be assessed for the assessment year 1982-83? - we answer the question of law referred to us in the affirmative in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled that interest on enhanced compensation under the Land Acquisition Act should be assessed on an accrual basis. The interest received must be spread over from the date of delivery of possession till the court's order on a time basis. The court cited relevant Supreme Court decisions in favor of the assessee.