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TMI Blog2014 (1) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act as “income from other sources” and is exigible to tax in the year of receipt under cash system of accountancy. It had also been observed that where the assessee is not maintaining books of accounts by adopting any specific method, it shall be treated to be cash system of accountancy. In the present case, the interest received by the petitioner was on account of delay in making the payment of enhanced compensation. Such payment could not par-take the character of compensation for acquisition of agricultural land and, thus, was not exempt under the Act. Once that was so, the tax at source had been rightly deducted by the payer - Decided against assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate of TDS under Section 203 of the Income Tax Act, 1961. The petitioners requested the respondent authorities for refund of the amount of TDS but no response was received. Thereafter, the father of the petitioners alongwith other petitioners sent representation/legal notice dated 28.4.2000, Annexure P.3 to the respondents through their counsel but still no action was taken. Hence the present writ petitions. 3. Learned counsel for the petitioners submitted that the tax deducted at source by the respondents on the amount of compensation received by the petitioners was illegal. He urged that the petitioners had received interest under section 28 of the Act on the enhanced compensation and therefore, in view of the judgment of the Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27. The interpretation aforesaid has the legislative acceptance by way of incorporation of Section 145A(b) and 56(1)(viii) w.e.f. 1.4.2010 by Finance (No.2) Act, 2009 whereby now irrespective of system of accountancy being followed by the assessee, the interest on enhanced compensation shall be taxable in the year of receipt." The judgment in Ghanshyam's case (supra) thus does not advance the case of the petitioners. 7. Further, the matter relating to tax deduction at source from receipt of enhanced compensation and interest received thereon was discussed in Sarti vs. Haryana State Industrial & Infrastructure Development Corporation Limited and others, CWP No.9739 of 2011 decided on 30.5.2011, wherein it was observed that interest r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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