Interest on refunded principal amount, deposited in auction sale is capital receipt

PCIT Vs Ins Finance & Investment P Ltd. (Delhi High Court) The primary issue in the appeal was to determine whether the Income Tax Appellate Tribunal (ITAT) correctly classified the interest received on the principal amount deposited by the assessee during an auction sale, later nullified by the court, as a capital receipt not subject to tax. Assessment Year and Return Filing: The assessee filed its income tax return for the Assessment Year (AY) 2011-12, declaring an income of INR 4,22,107. The case was selected for scrutiny, and during the assessment, the Assessing Officer (AO) noted tha...