https://www.taxtmi.com/caselaws?id=459534 Patna HC held that interest earned by a state construction corporation on fixed deposits of government grants received for police building construction constitutes income from other sources under Section 56 of the Income Tax Act. The court distinguished this from interest on borrowed funds, noting the corporation was not establishing or expanding business but conducting construction activity with government funds. The interest was earned on surplus grant funds, not borrowed capital, making it taxable as other sources income rather than business income or capital receipt. en-us Tue, 05 Sep 2023 00:00:00 +0530 Tue, 17 Dec 2024 11:10:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459534 Patna HC held that interest earned by a state construction corporation on fixed deposits of government grants received for police building construction constitutes income from other sources under Section 56 of the Income Tax Act. The court distinguished this from interest on borrowed funds, noting the corporation was not establishing or expanding business but conducting construction activity with government funds. The interest was earned on surplus grant funds, not borrowed capital, making it taxable as other sources income rather than business income or capital receipt. Case-Laws Income Tax Tue, 05 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459534