<h1>High Court Upholds ITAT's Decision Allowing 2.5% Deduction u/s 57 for Public Sector Hydroelectric Company.</h1> A public sector undertaking involved in hydroelectric projects claimed deductions under Section 57 of the Income Tax Act for expenses incurred in earning interest and rent income. The Assessing Officer disallowed these deductions, but the Income Tax Appellate Tribunal (ITAT) allowed a 2.5% deduction. The Revenue's appeal to the High Court was dismissed, with the court upholding ITAT's decision. The High Court referenced Supreme Court rulings in similar cases, confirming the deductions for the public sector company.