Deduction u/s 80P2(a)(i) - Interest on fixed deposits - The ...

Case Laws     Income Tax

April 23, 2024

Deduction u/s 80P2(a)(i) - Interest on fixed deposits - The Appellate Tribunal noted that the deductions available under Section 80P(2)(a) are activity-based, and the interest income earned by the assessee, derived from its activities, qualifies for the deduction. The Tribunal distinguished the facts of the present case from precedent cases cited by the revenue authorities, emphasizing that the interest income in question was attributable to the activities listed under Section 80P(2)(a)(i). The Tribunal concluded that the interest income earned by the assessee should be allowed as a deduction under Section 80P(2)(a)(i) of the Income Tax Act. - Tribunal allowed the appeal of the assessee.

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