ITAT Rajkot: Interest on Enhanced Compensation Forms Part of Land Value; ₹94.81 Lakh Addition Deleted

Babubhai Kanjibhai Sakariya Vs ITO (ITAT Rajkot)

Interest on Enhanced Compensation Is Part of Land Value, Not Income – ITAT Rajkot Deletes ₹94.81 Lakh Addition on Rural Land Acquisition

Rajkot   ITAT   allowed Assessee’s appeal &  held that interest awarded under section 28 of the Land Acquisition Act, 1894 forms part of enhanced compensation &  is not taxable as income from other sources under section 56(2)(viii).

Assessee had received ₹1.89 crore as interest on enhanced compensation for compulsory acquisition of rural agricultu

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