Interest received from debtors for late payment of sale proceeds eligible for Deduction U/s. 80-IC

Quadrant EPP Surlon Vs. ITO (ITAT Delhi) Interest on debtors amounting to Rs. 5,22,012, it is seen as an admitted position that this amount represents interest received from debtors for late payment of sale proceeds. Debtors have obviously arisen from the eligible business of the enterprise. Such interest partakes the character of the sale proceeds to which it relates in so far as the availability of deduction is concerned. The same is, therefore, eligible for deduction under section 80-IC as it is income derived from the sale proceeds of the eligible business. FULL TEXT OF THE ITAT ORDER IS A...