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2015 (4) TMI 404 - HC - Income TaxTaxability of interest receipt - ITAT held that the interest receipt is not taxable in the hands of the assessee - whether the interest income can still be taxable under Section 56 of the I.T. Act in the case of government companies where there is no profit motive? - Held that:- The issue involved in the present Tax Appeal and the proposed substantial questions of law in the present Tax Appeal is squarely covered against the revenue in view of the decision of the Division Bench of this Court in the case of General Motors India P. Ltd. Vs. Deputy Commissioner of Income-tax reported in [2012 (8) TMI 714 - GUJARAT HIGH COURT] as well as another decision of this Court in the case of Sar Infracon Pvt. Ltd (2014 (3) TMI 728 - GUJARAT HIGH COURT). In the identical facts and circumstances of the case, in the case of Gujarat Power Corporation Limited Vs. Income Tax Officer reported in [2012 (11) TMI 181 - Gujarat High Court] as well as in the case of Sar Infracon Pvt. Ltd (Supra) have held that the interest temporarily earned on the grant received from the Government and that too as per the instructions given by the State Government cannot be included in the income of the assessee. - Decided in favour of assessee.
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