Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 962 - AT - Income TaxNature of interest received - revenue receipt or capital receipt - compensation for breach of contract relating to capital assets - CIT (A) treated the interest received and tax deducted at source from the same u/s 194A as capital in nature - Held that:- We find merit in the submissions of the learned Counsel for the assessee. Merely because the tax has been deducted by the builder and recorded it in his books of account as revenue expenditure, the same cannot be treated as revenue receipt. The compensation received for breach of contract which relates to capital assets and, therefore, the learned CIT(A) has rightly held it to be capital in nature. Thus, we do not find any cogent reason to disturb the reasoned order passed by the learned CIT(A) and decline to interfere in the matter as such. - Decided against revenue
|