Deduction under section 80-I applies to interest on outstanding sale proceeds from manufactured machines, following prior-year reasoning.

Interest received on outstanding sale proceeds of machines manufactured by the assessee was held eligible for deduction under section 80-I of the Income-tax Act, 1961. The Bombay HC followed the reasoning already accepted in the assessee's own case for earlier years, and the same basis was applied to answer the reference in favour of the assessee.

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Issues: Whether the assessee was entitled to deduction under section 80-I of the Income-tax Act, 1961 on interest received on outstanding sale proceeds of machines manufactured by it.

Analysis: The question was already decided in the assessee's own case for earlier years, and the parties accepted that the same reasoning governed the present reference.

Conclusion: The question was answered in the affirmative and in favour of the assessee.

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