Taxability of interest received

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..... Taxability of interest received
Query (Issue) Started By: - shyamal roychowdhury Dated:- 23-12-2008 Last Reply Date:- 1-1-2009 Income Tax
Got 2 Replies
Income Tax
An architect entered into a contract / agreement with P.U.C FOR WORKS . THE CONTRACT CARRIED an arbitration clause , after compleating Job , there was a dispute on Bill settlement . the matter was referred to Arbitrator who .....

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..... in his award in addition settlement of bills also allowwed an amount for loss of profit & also directed payment of X amount as interest on loss of profit amount . The question is taxability of the amount 7 interest received in respect of LOSS OF PROFIT , Is it a capital receipt & not taxable or it is a revenue amount as normal receipt in business . opinion supported bycase laws/ circular / prvisio .....

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..... n of section /rule will be appriciated since we hv claimed as capital receipt which the A.O IS NOT AGREEING . he is likely to include it under income . Thanks Reply By Surender Gupta: The Reply: On the basis of apparent wording of the it is assumed that issue is related to loss of revenue / profit. The basic issue makes is apparently clear that the amount received with interest is a revenue rece .....

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..... ipt. You may refer the decision of honorable Supreme Court reported in 2008 -TMI - 6351 - SUPREME Court. Reply By shyamal roychowdhury: The Reply: FOR SRI SURENDRA GUPTA . THANKS FOR THE REPLY .CAN U PLEASE GIVE ME THE CASE DETAIL & ALSO WHERE IN TMI I WILL GET TEXT OF THE JUDGEMENT THANKS
Discussion Forum - Knowledge Sharing .....

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