LAW FOR ALL

Income Tax Act - Section 45(5) - compensation of land under sec.23 , 23 A, 28 & 34 of L.A.Act by brothers as legal heirs for the land of father - whether all the brothers can be considered as AoP and whether interest is also taxable and payable by spread over the period - A.O. held that the brothers as AoP not individuals & held that taxable is payable by the date of receipt of interest - High court consider them as Individuals but not A.o.P. and held that it should be spread over from the date of dispossession to till the date of actual payment - Apex court held that since the property came from inheritance but not by formation in to association of persons - the question of Association of Persons not applicable - for the second point - interest is not taxable as it is derived from business - so the interest paid under sec.34 of LA Act is not taxable but the interest paid under Sec.28 is a part of compensation and is liable to be taxed - tax is payable whenever received but not for a spread over period - allowed the appeal = CIVIL APPEAL NO(S). 8103/2009 COMMR.OF INCOME TAX,RAJKOT Appellant(s) VERSUS GOVINDBHAI MAMAIYA Respondent(s) = 2014 - Sept. Month - http://judis.nic.in/supremecourt/filename=41908