07/06/2011
Dear Friends,
A Company has received interest income of Rs. 17 Lakhs on loans given to other companies.
Further there used to be Rental income in earlier years. Now the property is lying vacant for the whole of F.Y.
The company has paid Rs. 5 Lakhs towards property taxes, 2 Lakhs towards security charges, office expenses Rs. 7 lakhs like salaries to staff, telephone etc.
My query is that can the compuation be done like ( Rs. 17 Lakhs - 5 Lakhs - 2 Lakhs - 7 Lakhs) = Rs.3 Lakhs Net Profit.
Is the above mode of computation right, in other words can i claim the above expenses. if yes please reply with supporting case laws etc !
Your expert views shall be highly appreciated.
Thanks
CA Rajesh Poddar
CAclubindia
