Quiz for the week (01 Sep 2025) :
Nation (P) Ltd was running chain of departmental stores across India. It wanted to establish an outlet in Mumbai. In pursuance thereof it decided to purchase a property in auction conducted by a PSU bank and paid advance of Rs.200 lakhs in April,2020. Later, based on court order the auction was cancelled. The company received the advance amount plus interest amount of Rs.50 lakhs in March, 2025 from the bank. Is the amount of interest taxable as compensation or as interest or exempt from tax?
Share your thoughts on the above on or before 8th September, 2025.