https://www.taxtmi.com/caselaws?id=18340 Interest earned on surplus funds of a statutory board, when invested under State direction and required to be retained as grant-in-aid, is treated as diverted at source and not as the board's real income. The analysis also states that a board performing municipal development and financial functions on behalf of the State, without a trade or business character, may claim exemption under article 289(1) and section 10(20A). On that reasoning, the interest receipt was treated as non-taxable and the reassessment notices were quashed. en-us Sat, 04 May 1996 00:00:00 +0530 Wed, 30 Sep 2009 12:41:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18340 Interest earned on surplus funds of a statutory board, when invested under State direction and required to be retained as grant-in-aid, is treated as diverted at source and not as the board's real income. The analysis also states that a board performing municipal development and financial functions on behalf of the State, without a trade or business character, may claim exemption under article 289(1) and section 10(20A). On that reasoning, the interest receipt was treated as non-taxable and the reassessment notices were quashed. Case-Laws Income Tax Sat, 04 May 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18340