[aaykarbhavan] Interest earned from investment of grant isn’t taxable if it is repaid to grantor or reduces future grants

 

Interest earned from investment of grant isn't taxable if it is repaid to grantor or reduces future grants

June 16, 2014[2014] 45 taxmann.com 339 (Hyderabad - Trib.)

IT: Where assessee received grant from Central Government and kept amount in short-term deposits in bank and further it earned interest on such deposits, since Central Government had given instruction that interest on short-term deposits either had to be refunded back to Government or to be adjusted against future grants to be released, interest earned could not be said to have accrued as income to assessee

IT: Where assessee claimed depreciation on certain assets disclosed in balance-sheet, since entire cost of assets had not been met by assessee but by other agencies, it was not eligible for depreciation

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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