A unit has been sold by 'A Company' to 'B Company' under business transfer agreement and so, employees also transferred.
However amount in Gratuity fund, that was maintained earlier by 'A Company' was transferred after several days hence interest on the same has also been paid to 'B Company' by 'A Company'.
Whether this interest is allowable as business expenditure to A Company ?
Please mention appropriate section and rule also.
CAclubindia
