Cess Collected under BOCW Act is Taxable Income, not a Grant, Despite Section 12A Registration: ITAT

The Income Tax Appellate Tribunal (ITAT) has ruled that the cess collected under the Building and Other Construction Workers (BOCW) Act constitutes taxable income and is not to be treated as a grant, even if the entity is registered under Section 12A of the Income Tax Act. The ruling clarifies that the cess collected is not exempt from income tax and must be included in the gross income for tax purposes. This decision has significant implications for entities involved in construction and related activities, as it affects how they account for and report income under the tax laws.