1998 (4) TMI 9 - HC - Income Tax

Summary

The High Court of Madras ruled that interest paid on delayed payment of compensation is a revenue receipt and taxable. The case involved a rice mill taken over by the Government, with interest paid on the delayed payment. The Tribunal held the interest as taxable income. The court cited a previous Supreme Court case to support its decision. The judgment favored the Revenue and directed the parties to bear their own costs.