1995 (6) TMI 15

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..... er, on the facts and circumstances of the case, the Tribunal was justified in law in holding that the pre-award interest of Rs. 34,677 on arbitration award received by the assessee was not taxable under the Income-tax Act, 1961 ? 2. Whether, on the facts and circumstances of the case, and when the principal award money was admittedly treated as a revenue receipt, whether the Tribunal was justifi .....

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..... igible to tax. On appeal, the Commissioner of Income-tax (Appeals) held that the pre-award interest of Rs. 34,677 was not taxable in view of the decision in Govinda Choudhury and Sons v. CIT [1977] 109 ITR 497 (Orissa). It is stated that the Department preferred an appeal before the Tribunal against the said order of the Commissioner of Income-tax (Appeals). The Tribunal, after consideration of th .....

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..... see under the award after allowing some deductions. The Tribunal held that the assessee's income should be determined at 12.5 per cent. of the award amount after excluding the interest component included therein. It also held that the pre-award interest should be totally excluded from the income of the assessee. On the aforesaid facts it was finally held that the Tribunal was justified in directin .....

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