The ITAT held that interest income received on unutilized grants ...

Interest income from unutilised government grants not taxable per Tribunal's earlier order. Sponsorship expenditure treated as revenue expense.

June 25, 2024

Case Laws Income Tax AT

The ITAT held that interest income received on unutilized grants is not taxable as it is considered part of the grant itself, following earlier Tribunal decisions. The orders for AYs 2014-15, 2015-16, 2017-18, and 2018-19 supported this view, and no new evidence was presented to warrant a different stance. The decision was in line with CIT(A)â€™s findings, as no higher court rulings were cited to challenge the Tribunal's position. Regarding sponsorship expenditure, the CIT(A) deemed it as revenue expenditure, citing statutory obligations and case law like Lakshmi Ji Sugar Mills Co. Pvt. Ltd. and Raj Spinning and Weaving Mills Ltd. This ruling favored the assessee, allowing for deduction as business expenses.

View Source

← Previous Next →

The ITAT held that interest income received on unutilized grants ...

Interest income from unutilised government grants not taxable per Tribunal's earlier order. Sponsorship expenditure treated as revenue expense.

June 25, 2024

Case Laws Income Tax AT

You may also like:

Interest income earned on government grants parked in bank accounts for Smart City project implementation was contested. Assessee, established for Smart City Scheme...

Taxability of interest income earned on FDR - unutilized interest was received, on the amount of grant received from the State Government, and kept in FDRs as per the...

Interest income earned from funds received from Government for setting up a company is a capital receipt, not revenue receipt, as the funds and income must be utilized...

ITAT ruled that interest earned on fixed deposits from unspent government grants qualifies as grant income under section 10(23C)(iiiac). When this interest is added to...

The key points of the legal judgment by ITAT Delhi are as follows: The case involved the taxability of interest income on FDRs purchased by Uttarakhand Forest...

The assessee, a university, claimed exemption u/s 10(23C)(iiiab) for the relevant assessment year, which was accepted by the Assessing Officer (AO) after considering the...

The assessee, a government educational institute, received a grant of Rs. 2.50 crore from the Central Government's Ministry of Labour and Employment under the...

Taxability of Interest earned on the Central Government grant - the interest earned on the Central Government grant is to be included as a part of the grant received...

Grant received from holding company as capital receipt - AO has not specifically invoked section 56(2). The dubious method adopted by the assessee of claiming the...

Claim of Loss - Deduction u/s. 57 - Taxability of real income / net interest income - The Tribunal observed that the investment in perpetual debt instruments (PDIs) was...

Karnataka State Natural Disaster Monitoring Centre (PAN: AAATD2434P), a body constituted by State Government of Karnataka, is exempted from income tax u/s 10(46) of...

Income from other sources - Deduction of interest expenditure - direction of the CIT – A in restricting the deduction to the extent of income earned of term deposit -...

TDS done by the Ld. AO on the interest granted u/s. 244A(1) - taxability of interest on refund in terms of Article 12(3)(a) of the India- Italy DTAA - the interest in...

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Interest income - zero coupon money - interest earned by investing the surplus share money in bank deposits, such interest is taxable as income from other sources and...

Quick Updates: