https://www.taxtmi.com/caselaws?id=59902 Interest payable by the Government under the Coal Mines (Nationalisation) Act and the Coking Coal Mines (Nationalisation) Act was held not to be taxable in the assessee's hands, because the statutory scheme required the Commissioner of Payments to apply compensation and interest first towards admitted liabilities of secured and unsecured creditors. As no surplus reached the assessee, the amount was diverted at source by an overriding statutory obligation and never formed the assessee's real income, whether on accrual or receipt basis. The interest therefore remained outside taxability in the assessee's hands. en-us Wed, 28 Apr 1999 00:00:00 +0530 Sat, 01 Jan 2011 17:15:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59902 Interest payable by the Government under the Coal Mines (Nationalisation) Act and the Coking Coal Mines (Nationalisation) Act was held not to be taxable in the assessee's hands, because the statutory scheme required the Commissioner of Payments to apply compensation and interest first towards admitted liabilities of secured and unsecured creditors. As no surplus reached the assessee, the amount was diverted at source by an overriding statutory obligation and never formed the assessee's real income, whether on accrual or receipt basis. The interest therefore remained outside taxability in the assessee's hands. Case-Laws Income Tax Wed, 28 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59902