https://www.taxtmi.com/caselaws?id=445512 ITAT Delhi dismissed Revenue's appeals regarding taxability of interest income on GoI funds. AO added interest as income from other sources u/s 56, but assessee collected interest on behalf of Government and remitted entire amount to Consolidated Fund of India. CIT(A) held interest belonged to GoI, not assessee, following Delhi HC precedent. ITAT agreed, noting when assessee collects income for Government with TDS in assessee's name, practical effect is income belongs to assessee but remittance to Government constitutes expense, resulting in no taxable income. Since entire interest was deposited in CFI, no addition warranted in assessee's hands. en-us Mon, 06 Nov 2023 00:00:00 +0530 Thu, 09 Nov 2023 10:05:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445512 ITAT Delhi dismissed Revenue's appeals regarding taxability of interest income on GoI funds. AO added interest as income from other sources u/s 56, but assessee collected interest on behalf of Government and remitted entire amount to Consolidated Fund of India. CIT(A) held interest belonged to GoI, not assessee, following Delhi HC precedent. ITAT agreed, noting when assessee collects income for Government with TDS in assessee's name, practical effect is income belongs to assessee but remittance to Government constitutes expense, resulting in no taxable income. Since entire interest was deposited in CFI, no addition warranted in assessee's hands. Case-Laws Income Tax Mon, 06 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445512