2008 (1) TMI 952

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..... the department challenging the common order of the Income Tax Appellate Tribunal dismissing separate appeals filed by the assessee as well as the department against the order of the Commissioner of Income Tax (Appeals). The assessment relates to the year 1993-94. The assessee, one Mr. N. Chellappan was awarded a contract by the Kerala State Electricity Board for the construction of a tunnel in the .....

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..... f Income Tax (Appeals) and confirmed by the Tribunal applies to interest element of the award amount. According to the Revenue, interest is entirely taxable as it is an addition to the contract amount. However, we find that the issue is covered by the decision of the Supreme Court in Commissioner of Income Tax v. Govinda Choudhurg and Sons (203 ITR 881) wherein the Supreme Court held that the comp .....

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