Section 80IAB deduction eligible on interest income on FDs linked to SEZ business operations

Candor Gurgaon One Realty Projects Pvt Ltd Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi recently ruled in the case of Candor Gurgaon One Realty Projects Pvt Ltd vs ACIT regarding the tax treatment of interest income earned on fixed deposits (FDs). The core issue was whether the interest income on FDs placed for securing bank guarantees required to develop and operate a Special Economic Zone (SEZ) qualifies for deduction under Section 80IAB of the Income Tax Act. Background of the Case Candor Gurgaon One Realty Projects Pvt Ltd (the assessee) placed FDs amounting to Rs. 3...