Interest earned from deposit of grant not includible if income is remitted back to government

ITO Vs Managing Director (ITAT Bangalore) ITAT Bangalore held that interest received from amount of government grant which is remitted back to either central or state government and the benefit of the same is not received by the assessee is not to be added in the income of the assessee. Facts- The case of the assessee was selected for scrutiny. AO noted that the assessee has received interest on FD of Rs.13,20,64,775 and interest on SB a/c. of Rs.69,82,761 which was not offered to tax as per revised return filed by the assessee. Accordingly, AO concluded that interest income of Rs.13,90,47,536...