Housing loan Vs lending the same to friend for interest

Sir, I have taken housing loan, but due to certain reasons I have not utilized that amount for that purpose, however, I have lent the same amount, as it is, to my friend for which I am getting interest.

Now, at the time of filing of income tax return, I am offering that interest received from my friend as income minus interest paid to bank on such loan, and on the balance I am discharging the income tax liability, Am I doing correct? If not correct, then, kindly refer me the provisions of income tax as to which section bars me from doing the above activity.