Interest earned on loans to staff members taxable as Income from Other Sources

Uttar Gujarat Vij Company Ltd Vs ACIT (ITAT Ahmedabad) ITAT Ahmedabad held that loans to staff members is not business expenses and therefore interest earned on such loans cannot be treated as business income. Facts- AO made additions on account of subsidy grant; difference of calculation for grants subsidies and consumer contribution; incomes like interest on staff loans and advances, interest on other loans and advances, gain on sale of fixed assets and miscellaneous income treated as income from other sources. CIT(A) partly allowed the appeal. Conclusion- Held that Loans to staff members ca...