https://www.taxtmi.com/caselaws?id=765843 Interest earned on fixed deposits and savings bank balances from unutilised Smart City project grants was examined as to whether it constituted taxable income from other sources or did not accrue as real income. The Tribunal noted that Central Government grant interest was required to be remitted to the Consolidated Fund of India under the General Financial Rules, 2017, while State Government grant interest was to be adjusted against future grants or dealt with under governing instructions. As the assessee lacked unfettered dominion over the interest, the Tuticorin Alkali principle was held distinguishable. The matter was remanded to verify actual remittance or adjustment, and no addition was to be made if such compliance was established. en-us Mon, 21 Oct 2024 00:00:00 +0530 Mon, 10 Feb 2025 11:02:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765843 Interest earned on fixed deposits and savings bank balances from unutilised Smart City project grants was examined as to whether it constituted taxable income from other sources or did not accrue as real income. The Tribunal noted that Central Government grant interest was required to be remitted to the Consolidated Fund of India under the General Financial Rules, 2017, while State Government grant interest was to be adjusted against future grants or dealt with under governing instructions. As the assessee lacked unfettered dominion over the interest, the Tuticorin Alkali principle was held distinguishable. The matter was remanded to verify actual remittance or adjustment, and no addition was to be made if such compliance was established. Case-Laws Income Tax Mon, 21 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765843