Income Tax Query III

Shefali Bajpai (Article Assitant & CA Final Student)   (1148 Points)

28 December 2008  

Z Ltd., a running concern, received interest on the loans/advances made by it to its debtors. It contended that such interest was to be treated as business income. Is the contention of Z ltd., correct, if such interest was not on account of delayed payment towards sales or compensation/damages or an item relatable to its business.