Interest on deposit of surplus grants as directed by State Government cannot be treated as income

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 Gove...