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1966 (10) TMI 38 - SC - Income TaxWhether the interest receipt constitutes income ? Whether it is exempt under section 4(3)(vii) of the Income-tax Act as a receipt of a casual and non-recurring nature ? Held that:- the interest paid to the assessee under the decree of the Supreme Court of Ceylon on the amount of estate duty directed to be refunded was income liable to be taxed under the Act. When the action was commenced by way of a petition in the District Court of Ceylon, it was well within the contemplation and anticipation of the persons representing the estate that a successful termination of the action would not merely result in a decree for the tax illegally collected, but would also make the Crown liable to pay interest on that amount from the date of the petition till the date of the payment. The receipt of interest in the present case by virtue of the decree of the Supreme Court of Ceylon bears no semblance, therefore, to a receipt of a casual character. It is not therefore possible to accept the argument of the appellant that the receipt of interest obtained under the decree of the Supreme Court of Ceylon was of a casual or non-recurring nature. Thus reject the submission of the appellant on this aspect of the case. Appeal dismissed
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