Interest earned on deposits of funds infused by Government is capital receipt: Kerala HC

Hll Biotech Limited Vs CIT (Kerala High Court)

Kerala High Court held that the “interest income” on the short-term deposits of the funds infused by the Government are in the nature of “capital receipt” and not “revenue receipt” and hence the same are not taxable as ‘income from other sources’.

Facts- The appellant Company is set up by the Ministry of Health and Family Welfare to manufacture and supply vaccines. It is a 100% subsidiary Company of M/s HLL Life Care Ltd., a wholly owned Government of India enterprise.

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