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Section 5 of the Income-tax Act, 1961 - Income - Accrual of - Assessment year 2005-06 - Interest on enhanced compensation is taxable in year of receipt [In favour of revenue] The assessee's children were owners of the land, inherited by them from their maternal grandfather. Enhanced compensation and interest thereon were received on acquisition of the said land. The income received by way of interest was assessed as capital gain in the hands of the father of the minor children under section 64(1A). The Commissioner (Appeals) as well as the Tribunal held that the interest on enhanced compensation was not taxable in the hands of the assessee, as the interest on enhanced compensation had not attained finality, as the matter was under dispute before the High Court which finally decided the issue on 17-11-2007, therefore, the interest was not chargeable to tax in the year of receipt, i.e., 2004-05 relevant to the assessment year 2005-06. Held that the Supreme Court in the case of CIT v. Ghanshyam (HUF) [2009] 224 CTR (SC) 522/26 DTR (SC) 129/ 315 ITR 1 has held that the year in which enhanced compensation is received is the year of taxability and the interest under section 28 of the Land Acquisition Act, 1894 on enhanced compensation is a part of enhanced compensation, therefore, the interest under section 28 of the Land Acquisition Act on enhanced compensation will also be taxable in the year of receipt. In these circumstances, view taken by the Tribunal could not be sustained. CASES REFERRED TO CIT v. K.J. Ramaswamy [2006] 205 CTR (Mad.)(FB) 352/[2006] 286 ITR 77 (Mad.)(FB), CIT v. Prem Bhai Parekh [1970] 77 ITR 27 (SC), K.V. Kuppa Raju v.Government of India [2000] 161 CTR (Kar.) 9/[2000] 242 ITR 522 (Kar.) and Syed Askari Hadi Ali Augustine Imam v. Union of India [1994] 122 CTR (Pat) 304/[1994]209 ITR 746 (Pat.) JUDGMENT Adarsh Kumar Goel, J. - This appeal has been preferred under s. 260A of IT Act, 1961 (hereinafter referred to as 'the Act') proposing following substantial questions of law arising out of order dt. 18th June, 2009 of the Income-tax Appellate Tribunal, Delhi Bench 'G', New Delhi (hereinafter referred to as 'the Tribunal') passed in ITA No.…

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