§278
Section 278 — Taxability of certain income
In plain terms: This section makes certain income taxable in the year received or reasonably certain: interest on compensation or enhanced compensation is income of the year it is received, and claims for price escalation or export incentives are income of the year in which reasonable certainty arises.
(1) Any interest received by an assessee on any compensation or on enhanced compensation, shall be deemed to be the income of the tax year in which it is received, irrespective of anything to the contrary contained in section 276.
(2) Any claim for escalation of price in a contract or export incentives shall be deemed to be the income of the tax year in which reasonable certainty of its realisation is achieved.
(3) The income referred to in section 2(49)(w) shall be treated as the income of the tax year in which it is received, if not charged to income-tax in any earlier tax year.