SC Allows Deduction of Grants as They Were Part of Statutory Business Activity

National Co-Operative Development Corporation Vs CIT (Supreme Court of India) The Supreme Court in National Co-Operative Development Corporation vs CIT examined whether grants disbursed by the National Co-operative Development Corporation (NCDC) from interest income earned on idle funds qualified as deductible revenue expenditure under Section 37(1) of the Income Tax Act, 1961. The dispute arose for Assessment Year 1976-77 and continued through multiple rounds of litigation over four decades. NCDC was established under the National Cooperative Development Corporation Act, 1962 to promote and f...