Can interest earned from fixed deposits made from grant in aid be held as income under the Income Tax Act?

Last updated: 08 June 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) in Mumbai considered whether interest earned by the Maharashtra Tourism Development Corporation Ltd. on fixed deposits made from unutilised grant-in-aid funds is taxable income. The tribunal noted that previously, such interest was offered as business income, but a new government directive suggested it should only be used for the grant's original purpose. The Assessing Officer disagreed, but the CIT(A) deleted the addition, a decision the Revenue appealed.

Court :
ITAT Mumbai

Brief :
 These are appeals by the Revenue against respective orders of learned CIT(A). Some issues are common and connected these are being consolidated and disposed of by this common order.

Citation :
I.T.A. No. 6423/Mum/2017

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