Case Law Details
DCIT Vs National Highways & Infrastructure Development Corp India (ITAT Delhi)
Introduction: The recent decision by the ITAT Delhi in the case of DCIT vs. NHIDCL unfolds a significant chapter in the realm of interest income tax disputes. This analysis delves into the intricate details of the case, examining the contentions, judicial pronouncements, and the ultimate verdict rendered by the tribunal.
Detailed Analysis:
1. Background and Grounds of Appeal: The National Highways Infrastructure Development Corporation Limited (NHIDCL) faced an appeal by the Revenue against the CIT(A)/NFAC order dated 01.12.2019. The primary issue revolved around the addition of Rs. 191,34,88,102/- as interest income generated on funds received from the Government of India (GoI).
2. Nature of NHIDCL and the Interest Income: NHIDCL, a fully-owned company of the Ministry of Road Transport & Highways, Government of India, operates as a Nodal Agency for developing national highways and infrastructure. The dispute arose over the treatment of interest income of Rs. ‘xyz’ earned on surplus funds kept in the bank during the relevant year.
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