11 July 2014
A Ltd company incorporated in 2008 with the main objective of Construction bussiness. compant borrewed fund for its business purpose but company did not start its business till 2014, companny lend this fund to its sister concern ie private company. company charged interest on that fund from sister concern and also claim interest cost in its accounts.
whether interest received on lendind fund is pre operative nature and it is allowed in IT ACT. Or whether it is taxable under the head of Other sources kindly mention any case law
CAclubindia
