Appeal allowed based on interest admissibility under Income-tax Act

The appeal focused on the admissibility of interest under section 80P(2)(a)(vi) of the Income-tax Act, 1961. The Tribunal relied on a precedent in the assessee's favor and directed the Assessing Officer to allow the claim, reversing the Commissioner of Income-tax (Appeals) findings. As a result, the appeal of the assessee was allowed on June 30, 2011.

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Issues involved:
The only issue agitated in this appeal is whether interest received on Fixed Deposits amounting to Rs 9,72,538/- is admissible for deduction under section 80P(2)(a)(vi) of the Income-tax Act, 1961.

Details of the Judgment:

Issue: Admissibility of interest under section 80P(2)(a)(vi) of the Act
The Tribunal considered the submission that a similar issue had been decided in favor of the assessee by a co-ordinate Bench in the assessee's own case for the assessment year 2005-06. The Departmental Representative did not contest the factual matrix of the case. Relying on the precedent, the Tribunal reversed the findings of the Commissioner of Income-tax (Appeals) and directed the Assessing Officer to allow the claim of the assessee. Consequently, the appeal of the assessee was allowed.

Conclusion:
The appeal of the assessee was allowed, and the decision was pronounced in the open Court on 30th Day of June, 2011.

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