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2015 (7) TMI 208 - AT - Income TaxAddition in respect of interest income - interest earned on the Central Government grant - Held that:- As relying on case of Sar Infracon Pvt. Ltd. [2014 (3) TMI 728 - GUJARAT HIGH COURT] and CIT Vs. Gujarat State Disaster Management Authority [2014 (2) TMI 789 - GUJARAT HIGH COURT ] in a situation when the assessee had received the grant from the Government of Gujarat as a nodal agency for constructing the houses for the Police Department and received interest on the temporary parking of funds on the instruction of the Government, therefore, the interest so earned being part of the grant should not be taxed as income in the hands of the assessee. The alleged interest income was earned with an overriding charge that the same should not be the income of the assessee but part of the grant. Hence, we hereby reverse the view of learned CIT(A) and allow this ground of the assessee. - Decided in favour of assessee.
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