Court held that the expression “interest” occurring in clause (28A) of section 2 of the Income-tax Act, 1961, widens the scope of the term “interest” for the purposes of the Act. The cumulative effect of section 145A(b) and section 56(2)(viii) would be that where land has been acquired compulsorily by the Government any interest received on compensation or on enhanced compensation would be taxable under the head “Income from other sources” in the year of receipt. (AY.2010-11)
Puneet Singh. v. CIT (2019) 415 ITR 215/ 182 DTR 194 / 310 CTR 817 (P&H) (HC)
S. 145A : Method of accounting–Interest-Compulsory acquisition of Land — Interest on enhanced compensation—Assessable in year of receipt under head Income from other sources. [S. 2(28A) 56(2)(viii), Land Acquisition Act, 1894, S.28]