Payment for delayed allotment of plot of land cannot be construed as ‘interest’

Pr. CIT Vs West Bengal Housing Infrastructure Development Corporation Limited (Calcutta High Court) The issue which falls for decision therefore is whether payment for delayed allotment of a plot of land by the Housing Board to an allottee will fall under the definition of ‘interest’ under section 2 (28A) of the Act. The decision of the Himachal Pradesh High relied on by Mr Khaitan is on a very similar set of facts. In that case, the H.P. Housing Board floated a scheme under which flats were to be constructed by the Board/assessee from the money deposited by the allottees and which stipula...