Assessee deposited principal amount pursuant to auction sale. However, said auction was eventually nullified by court. High Court directed for refund of whole amount deposited by assessee along with interest accrued thereon. Assessing Officer made addition on account of amount of interest received by assessee under section 56(2)(viii) of the Act. CIT(A) affirmed the order of the Assessing Officer.   Assessee contended that said amount of interest was in nature of capital receipt not chargeable to tax. Tribunal held that principal amount could not be characterized as compensation granted by Court on account of cancellation of auction.  Rather, such an amount was a bonafide amount of successful auction bidder, which he had deposited against purchase of land. Amount so received by assessee was entitlement of successful bidder which was given back to assessee vide an order of Court.  Thus, when amount was not in nature of compensation, then, as a natural corollary, interest accrued on said amount could not tantamount to revenue receipts, and hence, same could not be subjected to tax as per section 56(2)(viii) of the Act. On appeal by Revenue High Court affirmed the order of the Tribunal.  (AY. 2012-13)