Law:

Section:

(a) Income-tax--- Revenue receipt---Interest received by assessee under statutory provision or otherwise than under a statutory provision--No distinction-That being interest and therefore, revenue receipt. It matters little whether interest is received under a statute or other than under a statute. If certain amount had fallen due and is not paid to the person entitled thereto and the person who is liable to pay the said amount made liable to gay interest to compensate the other person for the deprivation of the use of money which he suffered, it is interest and a revenue receipt, whether this happens under a statute or under an agreement or otherwise. AIR1964SC1878andNIR1968SC129rsl. (b) Income-tax Capital or revenue: receipt-Name or libel given by assessee to a particular amount is not conclusive--Compromise decree between assessee---Plaintiff and defendant in a suit for recovery of Possession of land-m-Plaintiff-assessee giving up all his rights and claims over suit land for a certain amount--Amount shown in compromise as "interest'--Neither in truth `interest', nor revenue receipt. AIR 1968 SC 129 and AIR 196 ASC 1878 ref. JUDGMENT JEEVAN REDDY, J.--An identical question is referred in both then Refer­red Cases. 2. 'The Assessee is Sri J.D. Italia, who owned a certain extent of land in certain extent of land in Warangal District. The land was said to have been unauthorisedly occupied by Azam Jahi Mills Limited. The Assessee filed a suit, O. S. No. 1 of 1956 on the file of the learned District Judge, Warangal for recovery of possession of the said land, which was ultimately decreed on 22-1.1963. The Azam jahi Mills Limited filed an appeal in this Court, being A. S. No. 167 of 1963. In this appeal compromise was entered into between the parties which was recorded by this Court on 8-7-1968 is C. M. P. No. 9839 of 1968. According to this compromise, the Azam Zahi Mills agreed to gay a total sutra of Rs. 1,45,003 to the legal representatives of the plaintiff (plaintiff died pending the proceedings) comprising of the following items: (a) For land under suit 80,000 (b) Legal expanses 5,000 (c) Intent up to 13-7-1964 24,000 (d) Interest from 13-7-1964 to hereof…

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