ITAT deletes ₹5.68 Crore Addition as Encashed Bank Guarantees Were Govt Funds

DCIT Vs NTPC Vidyut Vyapar Nigam Limited (ITAT Delhi) Bank Guarantee Encashment Not Taxable as Income Due to Government Directions, Rules ITAT;  ITAT Rejects Revenue Appeal Because Encashed Guarantee Amount Was Treated as Liability;  Amount Received from Encashed Bank Guarantees Cannot Be Taxed When Assessee Is Mere Custodian: ITAT. The Income Tax Appellate Tribunal (ITAT) Delhi dismissed the Revenue’s appeal for assessment year 2016-17 and upheld the deletion of an addition of Rs. 5,68,60,563 relating to retention of amounts received from encashment of bank guarantees. The appeal arose fr...