https://www.taxtmi.com/caselaws?id=366257 HC allowed deduction under s.80IA, holding that the fixed deposit was a pre-condition to open a foreign letter of credit for importing critical components for manufacturing and not surplus funds placed to earn income. Interest earned was incidental to the principal commercial purpose, not the primary motive, and thus not disqualifying. The Tribunal's reliance on the Pandian Chemicals precedent was misplaced and distinguishable. The assessee is entitled to claim the deduction; the additional interest income does not negate eligibility. en-us Tue, 07 Aug 2018 00:00:00 +0530 Tue, 02 Sep 2025 10:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=366257 HC allowed deduction under s.80IA, holding that the fixed deposit was a pre-condition to open a foreign letter of credit for importing critical components for manufacturing and not surplus funds placed to earn income. Interest earned was incidental to the principal commercial purpose, not the primary motive, and thus not disqualifying. The Tribunal's reliance on the Pandian Chemicals precedent was misplaced and distinguishable. The assessee is entitled to claim the deduction; the additional interest income does not negate eligibility. Case-Laws Income Tax Tue, 07 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=366257