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2014 (3) TMI 728 - HC - Income TaxInterest accrued on fixed deposits - interest earned on the Central Government grant - Whether the ITAT was right in not treating the interest accrued on Fixed Deposits as income of the assessee – Held that:- What is important is whether the interest earned on the Central Government grant is to be treated as the income earned or not, and not what the assessee claimed - in the letter of the Central Government releasing the grant, which provides a condition that the interest earned on the central grant already released would form part of the central grant limit of ₹ 50 crore, the amount of ₹ 21,22,253 being interest earned on the fixed deposit of ₹ 16.70 crore which was the grant received by the assessee from the Central Government cannot be said to be its income - as per the condition of release of grant, the interest earned on the Central Government grant ie., ₹ 21,22,253 in the present case is to be included as a part of the grant received from the Central Government – there is no error has been committed by the Tribunal in deleting the addition of ₹ 21,22,253 made by the Assessing Officer, treating it as the income of the assessee – there is no substantial question of law arises for consideration – Decided against Revenue.
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