Dear Fellow CA members, kindly help in solving this query.
A partnership firm has two partners and has land in the firm's name. One of the partners has constructed a warehouse and taken 3 loans for the construction and maintenance of the warehouse like fumigation, staff salary etc.. The partner has entered into warehousing contract with Food Corporation of India for storage of agricultural food produce. She is admitting it as business income rather than income from House Property and also claiming depreciation and interest in her P&L.
Can the partner enter into a business agreement with the partnership firm where she herself is a partner, towards such utilisation of Land towards warehousing purpose?
CAclubindia
