TaxTMI 
TaxTMI 
2006 (9) TMI 109
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....Appellate Tribunal, Chandigarh Bench, arising out of its order dated May 17, 1993, in respect of the assessment years 1977-78 to 1979-80 and 1981-82 to 1986-87: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the amount of liquidated damages received by the assessee by way of compensation on account of delay in payments beyond th....
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....00 1978-79 62,80,210 1979-80 18,52,291 1981-82 39,83,346 1982-83 81,29,854 1983-84 1,06,04,611 1984-85 52,40,185 1985-86 56, 74,535 1986-87 20,03,457". 3. On appeal, the Commissioner of Income-tax (Appeals) reversed the view of the Assessing Offic....
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.... of Indore [1988] 172 ITR 24, observed as under (page 610) "When the bank discounts a bill, what happens is that the drawee gets a credit from the bank to the extent of the amount covered by the bill. This position has been explained in Law of Banking by Paget, 9th edition, at page 415, thus 'The discount of a bill is the purchase of it with, normally, a right of recourse and for a sum less than....
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....used to be sent along with the intimation of discount which showed that in case of delayed payment, overdue interest at a particular rate had to be collected, if not paid on presentation. These facts are sufficient to hold that the amount in question is interest under section 2(7) of the Interest-tax Act. It is settled law that interest is damages or compensation for delayed payment of money due.....