(1) THE assessee-respondent is a partnership firm engaged in the business of contractors, dealers in cement, sugar, iron, paddy, rice and petrol. The appeal relates to the assessment year 1972-73 for which the financial year 1971-72 was the previous year.

(2) IN its contract business, the assessee declared gross receipts of Rs 22,72,997 the details of which are not relevant for our present purposes. A part of the receipts arose to the assessee as a result of an arbitration award. The dispute before us relates to certain amounts awarded by the arbitrators as interest payable to the assessee. The amount of such interest about which there was dispute between the parties was mentioned by the Income Tax Officer as Rs 4,30,549. But the tribunal has found that the interest that can be taken into account for the assessment year under consideration is only Rs. 2,77,692.00.

(3) THE assessee contended that the amount received by him by way of interest was really in the nature of damages and was not taxable as a revenue receipt. This contention was rejected by the Income Tax Officer as well as Appellate Assistant Commissioner. Before the tribunal again the assessee urged