1996 (7) TMI 5

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.... Government for executing certain works. A dispute arose between the assessee and the Government which was referred to arbitration. The arbitrator awarded certain amount by way of compensation for the work done and also awarded interest. The question arose in the assessment proceedings, whether the interest awarded is income and is liable to be included in his assessment. The Income-tax Officer tr....

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....nd Sons [1993] 203 ITR 881. In the said decision, it is recorded that learned counsel for the assessee conceded that interest did constitute a revenue receipt. The court, however, held on the other question (arising in that appeal) that the said amount of interest cannot be taxed under the head "Income from other sources" which necessarily meant that it has to be taxed as a business receipt. It is....