Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that interest income attributable to funds utilized for a cottage industry business qualifies for a deduction under Section 80P of the Income Tax Act. The tribunal held that as long as the interest is derived from the business operations of a cooperative society, it is eligible for deduction. This decision supports the financial sustainability of cottage industries by providing tax relief on interest income, encouraging growth and development in this sector.