https://www.taxtmi.com/caselaws?id=306957 The Tribunal upheld the denial of set off of interest earned on FDR against interest paid on bank borrowings for deduction u/s 80IB. It ruled that the interest income on FDRs does not qualify as income derived from manufacturing activity and cannot be considered for the deduction. The Tribunal also rejected the argument for netting interest earned against interest paid, stating that there is no direct nexus between borrowed funds and FDR investments. The decision aligned with a previous ruling for AY 2005-06, affirming that interest income from FDRs is not eligible for deduction under section 80IB. en-us Fri, 31 Aug 2012 00:00:00 +0530 Thu, 09 Mar 2023 17:17:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306957 The Tribunal upheld the denial of set off of interest earned on FDR against interest paid on bank borrowings for deduction u/s 80IB. It ruled that the interest income on FDRs does not qualify as income derived from manufacturing activity and cannot be considered for the deduction. The Tribunal also rejected the argument for netting interest earned against interest paid, stating that there is no direct nexus between borrowed funds and FDR investments. The decision aligned with a previous ruling for AY 2005-06, affirming that interest income from FDRs is not eligible for deduction under section 80IB. Case-Laws Income Tax Fri, 31 Aug 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306957