Dcit, C-1(1), Chandigarh vs M/S H.S. Tuli & Sons Builders Pvt. Ltd., ... on 14 June, 2022
"Whe ther, on the f ac ts and in the circu ms tances of the case,
in teres t awarded by an arbitr ator is inco me to be assessed to
tax under the Act?"(p. 247). 4. It is no w brought to our no tice
th at the decis ion of the Orissa H igh Court in Govinda
Choudhary & Sons' case (supr a) was brought to th is Cour t in
appe al and has since been disposed of , wh ich is C IT v. Gov ind
Choudhary & Sons [1993) 203 IT R 881. In the said decis ion, it
is recorded th at learned counsel f or the assessee conceded th at
in teres t did constitu te a revenue rece ipt. T he court, ho wever,
held on the o ther ques tion (ar is ing in that appeal) th at the said
amount of in terest canno t be taxed under the head "Inco me
f rom other sources" wh ich necess arily me an t th at it has to be
taxed as a bus iness receip t. It is true th at on the question
whe ther the in terest constitu tes inco me or not, the s aid decis ion
is b ased upon a concess ion bu t we are of the opin ion that it
was a concession rightly made and is correct in l aw.
Accordingly, we hold that interest is inco me and it has to be
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ITA No 1516, 1517 & 1515/Chd/2019
M/s. H.S. Tuli & Sons Builders Pvt. Ltd.