https://www.taxtmi.com/caselaws?id=34651 The High Court of Karnataka dismissed an appeal under section 260A of the Income-tax Act, 1961, challenging the deletion of interest income by the Income-tax Appellate Tribunal for the assessment year 2003-04. The court upheld that interest income accrued on bank deposits by a nodal agency implementing public schemes was not taxable income, considering the agency's role in public welfare projects and the funds provided by the government for specific purposes. The court concluded that the interest earned on bank deposits was inseparable from the government funds and should not be subject to taxation as income for the agency. en-us Fri, 09 Jan 2009 00:00:00 +0530 Mon, 05 Oct 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34651 The High Court of Karnataka dismissed an appeal under section 260A of the Income-tax Act, 1961, challenging the deletion of interest income by the Income-tax Appellate Tribunal for the assessment year 2003-04. The court upheld that interest income accrued on bank deposits by a nodal agency implementing public schemes was not taxable income, considering the agency's role in public welfare projects and the funds provided by the government for specific purposes. The court concluded that the interest earned on bank deposits was inseparable from the government funds and should not be subject to taxation as income for the agency. Case-Laws Income Tax Fri, 09 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34651