Interest on Govt. Grants Taxable as Income From Other Sources: Patna HC

Bihar Police Building Construction Corporation Pvt. Ltd. Vs PCIT (Patna High Court) The Patna High Court dismissed a writ petition filed by Bihar Police Building Construction Corporation Pvt. Ltd., upholding an assessment order under Section 143(3) of the Income Tax Act. The corporation had challenged the inclusion of interest income earned from fixed deposits of unutilized government grants in its total taxable income. The grants were intended for the construction of buildings for the Police Department. The corporation argued that a government circular stipulated reducing future grants by the...