https://www.taxtmi.com/caselaws?id=470979 Government grants held by a nodal agency for State infrastructure schemes, remaining under State control and returnable on demand, do not accrue as the agency's taxable income. Interest on compulsory deposits of surplus grant funds likewise retains the grant's character where the agency cannot use it beneficially or earn profit from it. Form 26AS entries do not establish unrecorded income where interest is already recorded or receipts reimburse expenditure incurred for another party. Business expenditure incurred wholly and exclusively for road and bridge projects remains allowable under Section 37(1); absence of corresponding booked project income alone does not justify disallowance. en-us Tue, 31 Oct 2023 00:00:00 +0530 Mon, 17 Aug 2026 11:54:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470979 Government grants held by a nodal agency for State infrastructure schemes, remaining under State control and returnable on demand, do not accrue as the agency's taxable income. Interest on compulsory deposits of surplus grant funds likewise retains the grant's character where the agency cannot use it beneficially or earn profit from it. Form 26AS entries do not establish unrecorded income where interest is already recorded or receipts reimburse expenditure incurred for another party. Business expenditure incurred wholly and exclusively for road and bridge projects remains allowable under Section 37(1); absence of corresponding booked project income alone does not justify disallowance. Case-Laws Income Tax Tue, 31 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470979