https://www.taxtmi.com/caselaws?id=188537 Amounts received as damages for wrongful detention of movable property do not become taxable income merely because interest is used as the measure of quantification. The distinction turned on whether there was any contractual or legal obligation to pay interest: where the recipient had no such right and the decree or compromise treated the sum as part of compensation for detention, the character of the receipt remained compensatory. On that basis, the sum described as interest up to decree was treated as a capital-compensatory receipt and not income chargeable to tax. en-us Tue, 26 Sep 1939 00:00:00 +0530 Mon, 05 Dec 2016 11:04:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188537 Amounts received as damages for wrongful detention of movable property do not become taxable income merely because interest is used as the measure of quantification. The distinction turned on whether there was any contractual or legal obligation to pay interest: where the recipient had no such right and the decree or compromise treated the sum as part of compensation for detention, the character of the receipt remained compensatory. On that basis, the sum described as interest up to decree was treated as a capital-compensatory receipt and not income chargeable to tax. Case-Laws Income Tax Tue, 26 Sep 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188537