1989 (6) TMI 39

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....n the assessment year 1975-76 ?" As stated, the applicant is an assessee to income-tax. The respondent is the Revenue. The matter relates to the assessment year 1975-76. The previous year ended on March 31, 1975 The applicant-assessee is a firm. It is carrying on the business of manufacture of transmission towers and lines for the Kerala State Electricity Board. It entered into four different contracts with the Electricity Board in 1963. There were disputes between the Board and the assessee. The Board filed four suits for compensation for breach of contract. Three of them were dismissed. In the last suit, the assessee had filed a counter-claim which related to payments outstanding in respect of towers manufactured and supplied by the as....

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....ssessee received Rs. 12,40,250 during the relevant accounting period, out of which Rs. 2,25,265 represented interest. The order passed by the Board, annexure-D, dated December 11, 1974, states that the dispute between the assessee and the Board is settled and sanction is accorded for paying out of court Rs. 10,15,585 with 4% "interest" from June 3, 1969, till the date of payment. The receipt dated December 20, 1974, available at page 25 of the paper book, shows that the assessee received the entire amount in final settlement of all claims including compensation and "interest" claims. The Appellate Tribunal found that the amount was paid only as a result of the settlement arrived at between the parties. In paragraph 13 of the order, the Appe....