Section 80IC Deduction on interest earned from fixed deposits allowable

Havells India Ltd. Vs DCIT  (ITAT Delhi) Conclusion: AO was not justified in denying the claim of deduction under section 80IC as interest income earned was inextricably linked to the main business activity of assessee as it was earned from fixed deposits which was required to be maintained as per the statutory requirements. Held: AO noticed that assessee had credited Rs.16,725/- and Rs.6,334/- on account of interest income in the accounts of Baddi Unit and Haridwar Unit. AO disallowed the deduction u/s 80IC on such interest income as it was not derived from the business activity of the indus...