Motor Accident Claim Tribunal, Income Tax

[RAHUL MALHOTRA]

Hello Sir, My client has been awarded 5 lacs by Motor Accident Tribunal on account of accident in the form of Fixed Deposits. We have declared the FD Income in our return but have not disclosed the amount awarded and interest received by tribunal. Now issue arises when we claimed our TDS deducted on amount of interest awarded by tribunal in ROI, AO issued notice u/s 148 reasoning that you have not shown amount that you received as compensation and interest in your ROI. In my opinion it is a capital receipt and not taxable. Disability is partial. Kindly advise.