Taxable or not

CA Shraddha (Mcom, CS Exe.) (Service) (224 Points)

11 July 2013  

Dear All,

 

One of my client had sold goods to one party. Now, on default of that party, the company filed a suit against them and received excess amount than receivable which can be regarded as interest. Now, what will be the treatment of such excess amount received ? 

Thank you.