Accrued MACT Interest Cannot Be Taxed When Award Is Under Appeal

Kusum Chauhan Vs ITO (ITAT Chandigarh) MACT Interest Not Taxable Until Received – Addition of ₹15.13 Lakh Deleted The Chandigarh Bench of the Income Tax Appellate Tribunal allowed the appeal of Mrs. Kusum Chauhan for AY 2020-21, holding that interest on motor accident compensation (MACT) is not taxable when it is compensatory in nature and not actually received by the assessee. Key takeaways from the ruling are: Facts of the Case: The assessee received compensation pursuant to a MACT award for the death of her son. While the principal compensation was accepted as a capital receipt, the As...