The Delhi High Court has agreed to examine the constitutional validity of Section 56(2)(viii) of the Income Tax Act, 1961, which imposes tax on the interest received on enhanced compensation arising from the compulsory acquisition of land.

A Division Bench of Justice V Kameswar Rao and Justice Vinod Kumar, while hearing a plea filed by Suresh Kumar, a farmer based in Gurugram, Haryana, directed that the matter be listed for hearing on November 24, to decide the question of vires (constitutionality) of the impugned provision.

The petitioner, represented by Advocates Tripurari Ray and Atul Wadera, has challenged the inclusion of interest received on compensation under Section 56(2)(viii) as “income from other sources,” contending that such interest is an inseparable part of the compensatio

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