Interest on Government Grant Not Taxable as It Forms Part of Grant Corpus Under MOU: ITAT Ahmedabad

ITO Vs Gujarat Fibre Grid Network Limited (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad dismissed the Revenue’s appeals for Assessment Years 2018-19, 2020-21 and 2021-22, upholding the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC). The sole issue before the Tribunal was whether interest earned on surplus funds received from the Central Government for execution of the Bharat Net Project, and placed in fixed deposits with a Public Sector Bank, was taxable as the assessee’s income. The assessee, Gujarat Fibre Grid Network Lim...