Interest on a compensation award held to be part of compensation, and taxable
Jun. 23, 2016
Assessee, a jagirdar of the erstwhile Gwalior State, claimed that the interest on compensation received was part of compensation and was a capital receipt. ITO included the interest in his income. AAC upheld the order. Tribunal held that interest was a capital receipt and could not be included in the assessees income. High Court and Supreme Court, dismissing the appeal, held that interest was part of the compensation and thus, was taxable. -010795
