Section 80(I) deduction eligible on Interest on delayed payment from debtors

Kanakadurga Agro Oil Products Limited Vs ACIT (Andhra Pradesh High Court) Issue: The controversy revolves around the word ‘derived’ and the word ‘industrial undertaking’. The question is whether the interest paid on delayed payments form part of profits and gains derived from an industrial undertaking? Held: Applying the ratio laid down in the above judgments  to the case on hand, it is clear that there is direct nexus between the interest received, goods sold and the payments made including interest for the goods sold. Hence, it can be said that the profits and gains derived was from...