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?
CAclubindia
