Student
3986 Points
Joined July 2018
1. Yes, you are right in your approach. As per sec 71A, business loss can be set it off against IOS and T.O for the purpose of sec 44AB will only constitute revenue earned from Food and Beverage business.
2. Inter Corporate loans will not form part of T.O of your company and it will be taxed under the head IOS.
3. Your approach is correct as per books. But a company which incurs a loss and providing loan to its parent/sister company will ring a huge alarm to the IT department and as well as to the MCA. Make sure you have all the documents in order with respect to loan and interest income.
Please correct me if the above interpretation has an alternative view.