2008 (1) TMI 952

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....Devi JUDGMENT C. N. Ramachandran Nair, J. This appeal is filed by the department challenging the common order of the Income Tax Appellate Tribunal dismissing separate appeals filed by the assessee as well as the department against the order of the Commissioner of Income Tax (Appeals). The assessment relates to the year 1993-94. The assessee, one Mr. N. Chellappan was awarded a contract by....

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....d is whether the estimation of income at 10% as fixed by the Commissioner of Income Tax (Appeals) and confirmed by the Tribunal applies to interest element of the award amount. According to the Revenue, interest is entirely taxable as it is an addition to the contract amount. However, we find that the issue is covered by the decision of the Supreme Court in Commissioner of Income Tax v. Govinda Ch....