Should interest received by an FD be netted off with interest paid if a company is eligible for deduction u/s 80IC?

Last updated: 17 September 2021

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This case concerns whether interest earned by a company on its Fixed Deposits (FDs) should be offset against interest paid, when claiming a deduction under Section 80IC of the Income Tax Act. The company argued that the FDs were essential for business requirements and thus the interest earned should be considered alongside interest paid. The Tribunal, referencing a previous ruling in the assessee's own case, has restored the issue to the Commissioner of Income Tax (Appeals) for a decision.

Court :
ITAT Kolkatta

Brief :
This is an appeal preferred by the assessee against the order of the Ld. CIT(A)-16, Kolkata dated 25.04.2019 for AY 2013-14 .

Citation :
I.T.A. No. 1883/Kol/2019

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Attached File : 1442821_4434_1630658389_ita_1883_of_2019_pdp_steels_ltd_.pdf

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Judgement posted by

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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