Taxability of interest received

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..... 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 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 .....

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..... 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 / prvision 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 Suren .....

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..... der 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 receipt. 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 .....

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..... 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 - Taxability of interest received - Query Started By: - shyamal roychowdhury Dated:- 23-12-2008 Income Tax - Got 2 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxman .....

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..... agement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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