https://www.taxtmi.com/caselaws?id=782353 ITAT held that interest earned by the assessee, a government-owned transmission company, on unutilized specific-purpose government grants kept in fixed deposits is not taxable as business income but is inextricably linked to the grants and should be treated as increasing the grant amount from the State Government. ITAT affirmed CIT(A)'s view that such funds and interest are held on behalf of the Government and kept separate from the assessee's regular transactions. ITAT also upheld CIT(A)'s treatment of expenditure incurred for restoration of transmission infrastructure damaged by HUDHUD cyclone as revenue in nature, allowable in the year of incurrence, with any future reimbursement from the State to be taxed when received. The Revenue's appeal was dismissed in full. en-us Fri, 25 Jul 2025 00:00:00 +0530 Fri, 28 Nov 2025 08:24:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782353 ITAT held that interest earned by the assessee, a government-owned transmission company, on unutilized specific-purpose government grants kept in fixed deposits is not taxable as business income but is inextricably linked to the grants and should be treated as increasing the grant amount from the State Government. ITAT affirmed CIT(A)'s view that such funds and interest are held on behalf of the Government and kept separate from the assessee's regular transactions. ITAT also upheld CIT(A)'s treatment of expenditure incurred for restoration of transmission infrastructure damaged by HUDHUD cyclone as revenue in nature, allowable in the year of incurrence, with any future reimbursement from the State to be taxed when received. The Revenue's appeal was dismissed in full. Case-Laws Income Tax Fri, 25 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782353