Interest Accrued on Amount not in Nature of Compensation is Capital Receipt: Delhi HC [Read Order]

Amount in question was not in the nature of compensation, then, as a natural corollary, the interest accrued on the said amount cannot tantamount to revenue receipts and hence, the same cannot be subjected to tax as per Section 56(2)(viii) of the Income Tax Act
Delhi High Court - Capital Receipt - Interest Accrued on Amount - Nature of Compensation - Tax news - Nature of Compensation is Capital Receipt - Taxscan

In a recent decision the Delhi High Court observed that the interest accrued on amount not in nature of compensation is capital receipt. The appeal sought to assail the correctness of the order dated 13.04.2018 passed by the Income Tax Appellate Tribunal [ “ITAT” ], whereby, the ITAT has deleted the addition to the tune…

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