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2013 (12) TMI 776 - ITAT MUMBAIValidity of assessment u/s 143(3) - Held that:- The assessee received the refund along with interest of the amount paid by him under the agreement - Following DDA v. ITO [1995 (1) TMI 126 - ITAT DELHI] - Compensation paid by the Developer to the allottees under a self-financing scheme, for delay in the construction was considered by the Revenue as income in the nature of interest u/s. 2(28A). The assessee's right is limited to recover the amount paid (for the purchase of flats) at the contracted rate of interest, on being so demanded by the buyer on the construction having not been completed by the specified date - The proposition that the interest received is chargeable to tax as income will also apply where the interest is payable under the terms of the agreement, express or implied, and the court or arbitrator gives effect to the terms of the agreement and awards interest which has been agreed to be paid - The part of amount is chargeable u/s 56 as interest income - Partly allowed in favour of assessee.
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