https://www.taxtmi.com/caselaws?id=24080 Interest awarded by a civil court under section 34 of the Code of Civil Procedure, 1908, for wrongful deprivation of a security deposit was treated as a compensatory receipt rather than taxable income. The governing distinction is that interest arising under statute or contract is taxable, but amounts awarded as compensation for loss of property are not, even if described as interest. Because the right to receive the payment did not arise from any statutory mandate or contractual term, the receipt was characterised as a casual receipt and excluded from income for the relevant assessment year. en-us Thu, 15 Dec 1988 00:00:00 +0530 Sat, 16 Jan 2010 15:19:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24080 Interest awarded by a civil court under section 34 of the Code of Civil Procedure, 1908, for wrongful deprivation of a security deposit was treated as a compensatory receipt rather than taxable income. The governing distinction is that interest arising under statute or contract is taxable, but amounts awarded as compensation for loss of property are not, even if described as interest. Because the right to receive the payment did not arise from any statutory mandate or contractual term, the receipt was characterised as a casual receipt and excluded from income for the relevant assessment year. Case-Laws Income Tax Thu, 15 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24080