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 so

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