Interest on Enhanced Compensation u/s 28 of Land Acquisition is Part of Total Compensation, Not Income: ITAT

The ITAT has held that interest on enhanced compensation under Section 28 of the Land Acquisition Act is part of the total compensation and not income. This ruling clarifies the tax treatment of interest received on increased compensation for acquired land. The tribunal determined that such interest is an integral part of the compensation amount, not a separate income stream. This decision provides clarity to landowners receiving enhanced compensation, ensuring they are not unfairly taxed. The ruling aligns with the principle that compensation should reflect the true value of the acquired land.