Dismissing the appeals the Court held that the component of interest received on the compensation awarded by the Motor Accident Claims Tribunal on the death of the victim was interest within the meaning of section 2(28A) and could be subjected to tax and would be taxable on year-wise accrual basis.
Sharda Pareek (Smt.) v. ACIT (2019) 416 ITR 441 /104 taxmmann.com 76/262 Taxman 253(Raj) (HC) Editorial : SLP is granted to the assessee Sharda Pareek (Smt.) v. ACIT (2019) 412 ITR 31 (St)// 262 Taxman 252 (SC)
S. 2(28A) : Interest-Accrual basis-Interest on compensation awarded by Motor Accident Claims Tribunal is taxable on year wise accrual basis. [Motor Accident Claims Tribunal]