https://www.taxtmi.com/caselaws?id=471380 Interest earned on permitted investments of funds held in a mandatory escrow account under concession and financing arrangements qualifies as income derived from an eligible infrastructure business for Section 80IA deduction. The escrow and investment sub-account were compulsory, funds were restricted in source and use, and the assessee lacked independent control over investments and disbursements. As the investments were incidental to fulfilling concession obligations, project payments and lender-protection requirements, rather than an independent profit-making activity, the necessary business nexus and commercial expediency were established. The interest therefore forms part of eligible business income for the deduction. en-us Mon, 15 May 2023 00:00:00 +0530 Tue, 01 Sep 2026 16:19:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471380 Interest earned on permitted investments of funds held in a mandatory escrow account under concession and financing arrangements qualifies as income derived from an eligible infrastructure business for Section 80IA deduction. The escrow and investment sub-account were compulsory, funds were restricted in source and use, and the assessee lacked independent control over investments and disbursements. As the investments were incidental to fulfilling concession obligations, project payments and lender-protection requirements, rather than an independent profit-making activity, the necessary business nexus and commercial expediency were established. The interest therefore forms part of eligible business income for the deduction. Case-Laws Income Tax Mon, 15 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471380