Interest income from business activity classified as business income and hence relevant expenses allowed

Samir Networks LLP Vs ACIT (ITAT Ahmedabad)

ITAT Ahmedabad held that interest income earned from business activity is classifiable as business income and accordingly, relevant expenses allowed as deduction. Hence, appeal of the assessee allowed.

Facts- The issue involved herein is that the assessee had returned interest income of Rs.9,96,855/- under the heard “income from business and profession” and has claimed expenses to the tune of Rs.1,05,20,522/-against the same. Thus, the assessee has returned net loss under the head “business and profession”.

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