Interest Income from employee loans was to be treated as Business Income not Income from Other Sources

DCIT Vs Gujrat State Electricity Corporation Limited (ITAT Ahmedabad) Conclusion: Interest income earned from staff loans and advances was incidental to the business of power generation and qualifies as “business income” by relying on the judgment of the Hon’ble Orissa High Court in Odisha Power Generation Corporation Ltd. Held: Assessee, M/s. Gujarat State Electricity Corporation Ltd., was engaged in the business of power generation. AO treated interest income earned on loans and advances provided to employees as “income from other sources” under Section 56 instead of treat...