Interest on Land Acquisition Not Taxable When AO Took a Plausible View

Mahender Malik Vs ITO (ITAT Delhi) Interest u/s 28 on Land Acquisition Treated as Part of Compensation, Not “Other Sources”; Addition Deleted The dispute concerned taxability of interest received under section 28 of the Land Acquisition Act on enhanced compensation for compulsory acquisition of agricultural land. The Revenue sought to assess this amount as “income from other sources” under sections 56(2)(viii) and 57(iv), relying on High Court rulings such as Mahender Pal Narang. The Tribunal held that interest awarded under section 28 is fundamentally different from interest under sec...