https://www.taxtmi.com/caselaws?id=71410 Interest accruing on compulsory deposits under the Compulsory Deposit Scheme was treated as taxable interest income because the statute expressly characterised the return as interest and linked it to the prescribed rate. The argument that the receipt was compensation for statutory deprivation, and therefore a capital receipt, was rejected because the scheme's wording governed its legal character. Authorities cited for a contrary position were distinguished on the facts and scheme language. The result was that the receipt remained taxable as interest income, not as compensation or a capital receipt. en-us Wed, 27 Mar 1985 00:00:00 +0530 Sat, 23 Apr 2011 12:41:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71410 Interest accruing on compulsory deposits under the Compulsory Deposit Scheme was treated as taxable interest income because the statute expressly characterised the return as interest and linked it to the prescribed rate. The argument that the receipt was compensation for statutory deprivation, and therefore a capital receipt, was rejected because the scheme's wording governed its legal character. Authorities cited for a contrary position were distinguished on the facts and scheme language. The result was that the receipt remained taxable as interest income, not as compensation or a capital receipt. Case-Laws Income Tax Wed, 27 Mar 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71410