Damages is capital receipt but interest on damages is revenue receipt: ITAT Delhi

Universal Tractor Holding LLC Vs DCIT (ITAT Delhi) ITAT Delhi held that damages are compensation received is a capital receipt, however, interest on damages is to be treated as revenue receipt hence the same is taxable. Facts- The assessee M/s Universal Tractor Holding LLC (UTH) is a foreign company UTH entered into an agreement with another US Company, viz. M/s Escorts Agri Machinery Inc, (EAMI) for the sale of its membership interest of 49% in another US company. viz. M/s Beaver Creeks Holding LLC, for US$ 1.2 million, in 2006. EAMI was a wholly Owned subsidiary of M/s Escorts Ltd, a limited...