Interest on Land Acquisition Compensation Taxable as Other Income, Not Capital Gains: P&H HC

Mahender Pal Narang Vs Central Board of Direct Taxes (Punjab and Haryana High Court) Punjab and Haryana High Court has dismissed a petition filed by Mahender Pal Narang against an order of the Central Board of Direct Taxes (CBDT), clarifying a crucial aspect of income tax law regarding interest received on land acquisition compensation. The central question before the court was whether, following specific amendments to the Income Tax Act, 1961, interest received under Section 28 of the Land Acquisition Act, 1894, should be treated as part of the compensation (taxable under “Capital Gains...