https://www.taxtmi.com/caselaws?id=9749 Interest earned on temporary bank deposits of government funds entrusted to a nodal agency for implementing a public infrastructure scheme was not taxable as the agency's income. The court treated the agency as a trustee or implementing conduit, because the funds had to be applied only to the scheme's objects under guidelines, and the interest was also used for that same purpose. As there was no independent profit-making activity and the money remained tied to the public scheme, the interest could not be brought to tax in computing the assessee's total income. en-us Tue, 21 Feb 2006 00:00:00 +0530 Fri, 19 Sep 2025 15:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9749 Interest earned on temporary bank deposits of government funds entrusted to a nodal agency for implementing a public infrastructure scheme was not taxable as the agency's income. The court treated the agency as a trustee or implementing conduit, because the funds had to be applied only to the scheme's objects under guidelines, and the interest was also used for that same purpose. As there was no independent profit-making activity and the money remained tied to the public scheme, the interest could not be brought to tax in computing the assessee's total income. Case-Laws Income Tax Tue, 21 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9749