Interest on Unspent Government Grants Retains Grant Character Under Section 10(23C): ITAT Chandigarh

Advertisement Hydro Engineering College Society Vs ITO (ITAT Chandigarh) The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeals for Assessment Year 2019-20, holding that interest earned on unspent government grants retained the same character as the grants and directing the Assessing Officer (AO) to grant exemption under Section 10(23C)(iiiab) of the Income Tax Act. Consequently, the Tribunal also deleted the penalty under Section 270A. The assessee, a society established to set up and run an engineering college at Bilaspur, did not file its re...