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

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