Assessee (Partnership firm) has filed ITR u/s 139(4) for AY 2016-17, during the previous year assessee's business is closed and only house property income is taxable. Cash credit (CC) interest paid during the year was Rs.X , which was sanctioned and utilised for the purpose of business during the previous years prior to 2016-17. Whether interest on CC is allowable as deduction?
i.e. loss under the head busines income
Yes, but upto the period business was in operation.
Sir now business is temporarily closed, outstanding CC/OD partners are repaying along with the interest. whether interest on CC/OD can be claimed as expenditure under the head business income. firm has only house property income during the said AY
You may carry forward, in case you wish to restart again......
During the AY can we setoff loss due to CC Interest with House property income under the above discussed situation
Thank you for replying
As replied earlier.... All the losses till the closure of the business....... can be setoff against the income from HP of the same AY.........
Shaswat initial support private limited
Ahmedabad
CS
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SMJ global advisors pvt ltd
New Delhi
B.Com
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SMJ global advisors pvt ltd
New Delhi
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