Interest on Non-Recovery of Loans Falls within Purview of Business Activity only, Not Income from Other Sources: ITAT directs Re-adjudication [Read Order]

Wherein the loss on account of non-recovery of loan given to employees was treated as loss incidental to business activity, then the interest on such loan falls within the purview of business activity only and not ā€œincome from other sourcesā€
By Aiswarya Krishnadas - On April 5, 2024 4:00 pm - 2 mins read
ITAT - ITAT Ahmedabad - Income Tax - Re adjudication - taxscan

The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) directed re-adjudication, ruling that interest on non-recovery of loans falls within the purview of business activity only and not under income from other sources. The Assessing Officer ( AO ) treated interest income Rs.83, 43,000/- received on the loans and advances to staff…

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