1995 (6) TMI 15 - HC - Income Tax

Summary

The High Court of Orissa ruled that pre-award interest on an arbitration award received by the assessee is taxable under the Income-tax Act, 1961. The Tribunal was not justified in holding it as non-taxable. The interest component of the award is taxable, and the Tribunal's decision was deemed incorrect. The rate of tax on interest should be consistent with the rate of profit on the principal business.