50% deduction allowed u/s57 in case interest on mact compens

Dear CA Amit,

It is a good observation by you. Clause (iv) of Section 57 refers to 50 % deduction on " income of the nature referred to in clause (viii) of sub-section (2) of section 56 ".

Now going to Section 56(2)(viii) it says "  income by way of interest received on compensation or on enhanced compensation referred to in clause (b) of section 145A. "

Now going to section 145A' clause (b), it says " interest received by an assessee on compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received. "

The word used is compensation. You can go ahead. But it could be a matter of litigation at later stages.

Senior member's views are invited.

Is the word "compensation" defined in the Income Tax Act ?