https://www.taxtmi.com/caselaws?id=7685 Where a debtor makes no direction on appropriation of an open payment received in execution of a decree, the creditor may apply it to any lawful debt due and payable, including principal, unless surrounding circumstances require a different inference. The usual preference for setting payments first against interest is not an absolute rule, and Order 34 Rule 10 CPC was held inapplicable. Applying the appropriation principles reflected in sections 59 and 60 of the Indian Contract Act, the receipt could validly be treated as principal rather than interest, so it was not taxable as income from interest and no referable question of law survived. en-us Thu, 27 Nov 1969 00:00:00 +0530 Tue, 17 Mar 2009 15:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7685 Where a debtor makes no direction on appropriation of an open payment received in execution of a decree, the creditor may apply it to any lawful debt due and payable, including principal, unless surrounding circumstances require a different inference. The usual preference for setting payments first against interest is not an absolute rule, and Order 34 Rule 10 CPC was held inapplicable. Applying the appropriation principles reflected in sections 59 and 60 of the Indian Contract Act, the receipt could validly be treated as principal rather than interest, so it was not taxable as income from interest and no referable question of law survived. Case-Laws Income Tax Thu, 27 Nov 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7685