Income Tax on money received from a litigation

[Malay Kapat]

I have received an amount as a result of a verdict of a court case. I paid an amount to a builder with the promise of an apartment which was never delivered, hence I went to the consumer court (State and then National level). Finally after a decade court has directed the developer to pay me back the amount I paid plus interest for all these years. I have received around 80% of the amount last year in my bank account. 

Can you please let me know if this amount is taxable or not? If taxable, which schedule and how should I calculate the taxable amount? An example calculation with an imaginary amount and interest rate will be extremely helpful. 

AI Summary

Taxation of litigation recoveries: interest awarded is taxable as income from other sources, principal is non-taxable.
Principal repayments recovered by court are not taxable; court-awarded interest is taxable under Income from Other Sources. If only part of the award is received in a year, apportion the receipt proportionately between principal (non-taxable) and interest (taxable) and report the remaining amounts in the year they are received.