1991 (6) TMI 69

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..... hether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest of Rs. 1,99,109 awarded by the arbitrator is not exigible to tax being in the nature of ex gratia payment but forming an integral part of the award money of Rs. 4,31,107 out of which Rs. 2,32,000 is decided to be a revenue receipt and, therefore, exigible to tax and if interest awarded in .....

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..... as been held by this court in Govinda Choudhury and Sons v. CIT [1977] 109 ITR 497, that the award by an arbitrator relating to interest is in the nature of ex gratia payment and, therefore, cannot be treated as income exigible to tax. We take the same view in the present case and hold that, in view of the law prevailing at the relevant time, payment of interest could not have been taken as income .....

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