Interest from Staff Loans Qualifies as Business Income, Not Other Sources

PCIT Vs Paschim Gujarat Vij Company Ltd. (Gujarat High Court) Conclusion: Income received by an electricity distribution company from staff loans and advances should be classified as business income under Section 28(i) and not as “income from other sources”. Held: Assessee-company was primarily engaged in the business of electricity distribution, filed a nil return of income. AO took the view that interest income received from staff loans and advances should be treated as “income from other sources” because it was not generated from the day-to-day business operations of the company. T...