On appeal the Court held that since Government departments were not under obligation to pay Income-tax, merely because the funds were in the hands of the assessee and earned interest, the interest income could not be taxed in the assessee’s hands. The interest income for the assessment year 2009-10 was non-computable income of the assessee. (AY. 2009-10, 2011-12)
Brahmos Aerospace Thiruvananthapuram Ltd. v. ACIT (2021) 438 ITR 91/ 208 DTR 185/ 323 CTR 922 (Ker.)(HC)
S. 4 : Charge of income-tax-Real income-Mere receipt is not sufficient-Subsidiary of a Government Company-Money belongs to central Government-Not assessable as income. [S. 2(24)]