Business expenditure

Interest income — Matter remitted to the AO with a direction upon him to treat the entire amount of interest paid by the assessee-money lender to his creditors as business expenditure and to treat the amount of interest received by the assessee from his debtors as his income from money lending business, subject, however, to the provisions contained in s 14A — as held by KolHC in Rajendra Kumar Dabriwala & Ors v CIT — In favour of: Others.

Decided on: 29 September 2011