https://www.taxtmi.com/caselaws?id=464968 ITAT held that interest accrued on funds received as government grants for specific Lift Irrigation Schemes does not constitute taxable income of the assessee. The Tribunal observed that the funds, including the interest, were earmarked for specific purposes, kept separately, and fully controlled by the Government, with the assessee acting only as an implementing agency. Relying on SC precedent that such interest is inextricably linked to the grants and only enhances the grant amount, ITAT upheld the CIT(A)'s deletion of the addition and dismissed the revenue's appeal. en-us Fri, 25 Feb 2022 00:00:00 +0530 Wed, 26 Nov 2025 17:14:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464968 ITAT held that interest accrued on funds received as government grants for specific Lift Irrigation Schemes does not constitute taxable income of the assessee. The Tribunal observed that the funds, including the interest, were earmarked for specific purposes, kept separately, and fully controlled by the Government, with the assessee acting only as an implementing agency. Relying on SC precedent that such interest is inextricably linked to the grants and only enhances the grant amount, ITAT upheld the CIT(A)'s deletion of the addition and dismissed the revenue's appeal. Case-Laws Income Tax Fri, 25 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464968