Case Law Details
ACIT Vs Gujarat State Road Development Corporation Ltd. (ITAT Ahmedabad)
ITAT Ahmedabad held that interest income earned by depositing surplus grants in a particular mode as per the directions of the State Government is also treated as part of the grants and hence it cannot be treated as income of the assessee.
Facts- The assessee is domestic company engaged in building infrastructure projects including roads. Its main objects, for which it has been incorporated, is to carry out construction and development of roads and do all work being handled by the Roads and Building department of the Government of Gujarat, under the BOT, BOOT or BOLT schemes or any other manner, and also to undertake projects outside Gujarat, develop and provide consultancy and construction services in connection with the infrastructure building activities.
AO made various additions towards unutilized grant; project development fee spread over 3 years; interest on deposits with GSFS and expenses of project for which no income was offered.
CIT(A) deleted all the additions made by the AO except that relating to the interest on deposits with GSFS and a part of expenses of project for which no income was offered. Accordingly, the appeal filed by the assessee was partly allowed by CIT(A). Aggrieved by the same, both the Revenue and the assessee have come up in appeal before us.
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