https://www.taxtmi.com/caselaws?id=771926 ITAT Hyderabad allowed the appeal in part regarding a state government undertaking acting as nodal agency. The tribunal deleted the addition of Rs. 150 crores grant received from Government of Telangana, holding that since the entire amount was transferred back-to-back to implementing agencies on the same dates, it was not income in the appellant's hands. However, the tribunal upheld disallowance of Rs. 547.50 crores interest expenditure under section 43B(d), noting the appellant claimed deduction without accounting the corresponding government grant as income. Issues regarding unexplained investment under section 69, HUDCO loan differences, and brought forward business losses were remanded to AO for fresh examination. Addition of unrecorded rent was partially sustained at Rs. 4.60 lakhs after adjusting already accounted rental income. en-us Fri, 28 Mar 2025 00:00:00 +0530 Mon, 02 Jun 2025 08:34:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771926 ITAT Hyderabad allowed the appeal in part regarding a state government undertaking acting as nodal agency. The tribunal deleted the addition of Rs. 150 crores grant received from Government of Telangana, holding that since the entire amount was transferred back-to-back to implementing agencies on the same dates, it was not income in the appellant's hands. However, the tribunal upheld disallowance of Rs. 547.50 crores interest expenditure under section 43B(d), noting the appellant claimed deduction without accounting the corresponding government grant as income. Issues regarding unexplained investment under section 69, HUDCO loan differences, and brought forward business losses were remanded to AO for fresh examination. Addition of unrecorded rent was partially sustained at Rs. 4.60 lakhs after adjusting already accounted rental income. Case-Laws Income Tax Fri, 28 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771926