1998 (4) TMI 9

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..... of the assessee arising out of assessment of its income for the assessment year 1980-81 is as to whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 1,73,343 constituted income from other sources in the hands of the assessee ? A rice mill of the assessee was taken over by the Government on December 7, 1972, but the payment therefor w .....

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..... for the assets that were taken over resulted in interest being paid on the unpaid price. Interest so paid cannot be regarded as a sum which is also to be regarded as receipt which is capital in nature, as the reason for the payment of interest was only the fact that unpaid price had been retained by the transferee and interest paid was on the sum so retained. Had the unpaid price been paid over t .....

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..... e receipt liable to tax under the Income-tax Act. That principle is equally applicable to the case of the assessee herein. Interest paid on the delayed payment of compensation or unpaid price is a revenue receipt and is taxable accordingly. The question referred to us is therefore answered in the affirmative, in favour of the Revenue and against the assessee. Parties to bear their respective co .....

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