Interest from FDRs Exempt as Part of Corpus Fund u/s 11(1)(d): ITAT Remands Matter to AO

The ITAT remanded a case involving interest from Fixed Deposit Receipts (FDRs), holding that such interest qualifies as part of a corpus fund under Section 111D of the Income Tax Act. The case involved the tax treatment of interest earned from FDRs held in trust by a charitable institution. The tribunal clarified that since the interest was part of the corpus fund, it is exempt from taxation. This ruling provides clarity for charitable organizations on how interest income from FDRs should be treated, ensuring they are not taxed on income that is part of their capital reserves.