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2015 (11) TMI 1722 - AT - Income TaxNature of income - arbitration debt received - business receipt OR Income from Other Sources - CIT-A directed the AO to treat the interest amount as part of business income of the assessee for the purpose of computing income u/s 44AD - Held that:- The assessee during the course of execution of contract had some disputes with M/s. Konkan Railway which went into arbitration and the assessee was awarded ₹ 11,65,889/- as claimed loss by assessee with interest for the delayed payment @ 10% p.a. of ₹ 26,79,266/-. In our opinion the interest is only the amount of addition and accretion to the assessee receipts from the contracts and it is obviously attributable and incidental to the business carried out by the assessee. In the decision referred to above in the case of Govinda Chaudhary and Sons (1992 (4) TMI 8 - SUPREME Court) similar issued came up for consideration before the Hon’ble Supreme Court and it was held by the Hon’ble Court that interest is also part of the business receipt of the assessee. We therefore, do not find any infirmity in the order passed by the CIT(A) and upheld the same by dismissing the appeal of the revenue. - Decided in favour of assessee.
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