The question raised by Sh Ketan Vyas is an important question. The amendments were made w.e.f. 1-4-2010 only to tax the interest in the year of receipt. These amendments were brought in to overcome the difficulties created by the decision of Supreme Court in the case of Rama Bai vs CIT, 181 ITR 400(SC) wherein it was held that interest is taxable in different years on accrual basis.
On the other hand, in case of Ghanshyam HUF, the Apex Court held that interest u/s 28 was not the interest but part of compensation to be included for computation of capital gains and for taxation u/s 45(5) of Income tax Act. As per that decision only interest u/s 34 is the interest.
So, in my view, amendments made w.e.f. 01-04-2010 do not change the legal position regarding interest u/s 28 i.e. interest u/s 28 is to be treated as part of compensation.
On the other hand, in case of Ghanshyam HUF, the Apex Court held that interest u/s 28 was not the interest but part of compensation to be included for computation of capital gains and for taxation u/s 45(5) of Income tax Act. As per that decision only interest u/s 34 is the interest.
So, in my view, amendments made w.e.f. 01-04-2010 do not change the legal position regarding interest u/s 28 i.e. interest u/s 28 is to be treated as part of compensation.