| Case ID |
16b74bec-53b8-49ef-926a-8fccd5cec6ff |
| Body |
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| Case Number |
D.B.I.T. Reference No. 36 of 1983 |
| Decision Date |
May 06, 1996 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal was justified in holding that the interest amounting to Rs.5,757 awarded under section 110-CC of the Motor Vehicles Act, 1939, was a revenue receipt and thus exigible to tax. The right to claim interest is a statutory recognition under the Motor Vehicles Act. The appeal was decided in favor of the Revenue and against the assessee, affirming the taxable nature of the interest received. |
| Summary |
This case revolves around the taxation of interest awarded under the Motor Vehicles Act, 1939. The Income-tax Appellate Tribunal referred a question of law regarding whether the interest amount awarded to the petitioner was a revenue receipt. The court ruled that the interest, being a statutory recognition under section 110-CC of the Motor Vehicles Act, is exigible to income tax. The case references important precedents, emphasizing that interest received due to the provisions of the law is taxable. The ruling clarifies the distinction between compensation and interest, establishing that interest, whether statutory or contractual, represents an additional income that is subject to taxation. This decision is significant for practitioners in tax law and personal injury claims, impacting how interest awards are treated in tax assessments. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
V.K. Singhal,
M.A.A. Khan
|
| Lawyers |
Nemo for the Assessee,
K.S. Gupta for G.S. Bapna for the Commissioner
|
| Petitioners |
Kailash Narain Gupta
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1999 SLD 61,
1999 PTD 428,
(1997) 225 ITR 921
|
| Other Citations |
CIT v. Periyar and Pareekanni Rubbers Ltd. (1973) 87 ITR 666 (Ker.),
Govinda Choudhury & Sons v. CIT (1977) 109 ITR 497 (Orissa),
Govindaraju Chetty (T.N.K.) v. CIT (1967) 66 ITR 465 (SC),
Shamlal Narula (Dr.) v. CIT (1964) 53 ITR 151 (SC)
|
| Laws Involved |
Income Tax Act, 1961,
Indian Motor Vehicles Act, 1939
|
| Sections |
256,
110-CC
|