https://www.taxtmi.com/caselaws?id=66603 Interest awarded by an arbitrator under the Requisitioning and Acquisition of Immovable Property Act, 1952, without any statutory provision or contractual stipulation, was treated as part of compensation rather than taxable income. The Tribunal applied the principle that interest is ordinarily revenue when payable under statute or contract, but it assumes a capital character where granted ex gratia as compensation for being kept out of property or money. On the facts, the award was characterised as ex gratia compensation for deprivation of property, so the interest was held to be a capital receipt and the income additions were unsustainable. en-us Tue, 31 Dec 1985 00:00:00 +0530 Sat, 05 Mar 2011 10:54:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66603 Interest awarded by an arbitrator under the Requisitioning and Acquisition of Immovable Property Act, 1952, without any statutory provision or contractual stipulation, was treated as part of compensation rather than taxable income. The Tribunal applied the principle that interest is ordinarily revenue when payable under statute or contract, but it assumes a capital character where granted ex gratia as compensation for being kept out of property or money. On the facts, the award was characterised as ex gratia compensation for deprivation of property, so the interest was held to be a capital receipt and the income additions were unsustainable. Case-Laws Income Tax Tue, 31 Dec 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66603