Any jitter on S/Pdif will be suppressed. It doesn't matter what introduced this jitter (CDP or digital cable). The only jitter that cannot be removed is recorded jitter. Early digital recordings were sometimes done with poor, jittery A/D clock. Such jitter cannot be removed and the only way to fix it is to digitize again, if analog tapes are still available.
Does removing "interface jitter" help, if my source has jitter?
I'm thinking of getting a Benchmark 3 DAC, and one of the selling features is its UltraLock3™ jitter attenuation system, which Benchmark says "fully isolates the inputs from INTERFACE jitter" (emphasis mine). If my upstream source has jitter, will this system isolate that from the DAC? My usual source is a Blusound Vault, and I suspect its jitter control is not as good as the Benchmark's.