Interest received on Enhanced Compesation from Court, as per Ghanshyamdas HUF by Supreme Court Interest u/s Section 28 of Land Acquisition Act 1894 forms the part of Compensation Amount, but with effect from AY 2010-11 new section 57 is added under the head income from Other Source. Stating Interest on Compensation or Enhanced Compensation 50 % interest as income, now the issue is wheather Supreme court deceision will prevail or section 57(5) , because interest paid under section 28 is due to un due delay from the court to decide compensation, and further it is discretionery on th court wheather to pay Interest under section 28 or not, now i have argument interest paid under 28 is really a income or it forms the part of compensation. it is not same in case of Section 34 of L A Act , because this section invoks only after the undue delay from the Land Acquisition officer to remitt the compensation amount to the Court after the courts order, here the Compensation amount is fixed from that day the Principel debtor relation begins and interest paid u/s 34 is puerly interest, kindly confirm me whether the stand i am taking is correct.
Interest on enhanced compensation on agriculture land
Gokul Malpani (Proprietor) (92 Points)
26 October 2012