Lose under other source......

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Rahul jain

LEARNING & TEACHING

435 Points Joined January 2014

hiiii......

my question is that-

A textile comapany gave a loan of Rs.20 lac and the intrest accrued on that amt. is Rs.6 lac.(of past three years)

Company maintain the accounts on the accrual basis.hence recorded the Rs. 6 lac as its income and paid tax as well.it was shown in income tax return under Income from other source. now the party refuses to make payment of Rs. 6 lac. the intrest amount and only give the principle amt. Rs.20 lac.

Can the company show Rs. 6 lac as its lose under income from other source and setoff it from other income of the same head ie. other interest income?

or the comapany should pay tax on Rs. 6lac. till the full repayment by the defaulter?

Replies (2)

Guest

Case against claiming assessee:

Income Tax Appellate Tribunal - Mumbai

G.M. Breweries Ltd, Mumbai vs Department Of Income Tax on 26 April, 2013

Case in Favour of assesee:(It was proved that providing the loans to company involved in the business and manufacturing of soft drinks beverages was in the nature of the business of the assessee, hence, the same was incidental to the business of the assessee.)

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”

BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER

AND

SHRI SHAMIMYAHYA, ACCOUNTANT MEMBER

I.T.A. No. 147/Del/2010 – A.Y. : 2003-04

M/s Pepsico India Holdings Private Limited VS. DCIT(5/7/13)