Interest on Fixed Deposits Exempt When Article 289 Applies

Maharashtra Airport Development Company Vs National Faceless Assessment Centre (ITAT Mumbai) Mumbai ITAT Holds MADC as “State” u/Art. 12: Interest on FDs & State Grants Immune from Tax u/Art. 289  Assessee, Maharashtra Airport Development Company Ltd (MADC), a special purpose company incorporated by Government of Maharashtra for development of airports, MIHAN & allied infrastructure, challenged taxation of interest income of ₹3.65 crore on fixed deposits & grant-in-aid of ₹174.03 crore received from State Government. Tribunal admitted an additional legal ground relying on ...