https://www.taxtmi.com/caselaws?id=11617 Interest awarded by the Court on arrears of salary, granted in its discretion on payment of a higher pay scale, was treated as compensation for delayed payment rather than statutory interest. The distinction drawn was that interest payable under a statute is ordinarily taxable as income, whereas discretionary court-awarded interest linked to the facts does not necessarily assume that character. On that basis, the receipt was held not to be taxable income and was characterised as a capital receipt. en-us Tue, 19 Aug 2003 00:00:00 +0530 Tue, 02 Feb 2010 13:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11617 Interest awarded by the Court on arrears of salary, granted in its discretion on payment of a higher pay scale, was treated as compensation for delayed payment rather than statutory interest. The distinction drawn was that interest payable under a statute is ordinarily taxable as income, whereas discretionary court-awarded interest linked to the facts does not necessarily assume that character. On that basis, the receipt was held not to be taxable income and was characterised as a capital receipt. Case-Laws Income Tax Tue, 19 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11617