Interest on capital

AN LLP IS CARRYING 2 BUSINESSES - ONE IS THE TEXTILE AND ONE IS COLD CHAIN FACILITY BUSINESS. THE PARTNERSHIP AGREEMENT AUTHORIZES PAYMENTOF INTEREST AND SALARY WHICH ARE DEBITED TO PROFIT ABD LOSS ACCOUNT. THE DEED AUTHORIZES PAYMENT OF INTEREST ON CAPITAL CONTRIBUTED TOWARDS TEXTILE BUSINESS ONLY.  

THIS QUESTION IS IN PRACTICE MANUAL OF DT OF ICAI - Q NO.12 JAN 2017 EDITION.

MY QUESTION IS THAT WHETHER INT ON CAPITAL IN RESPECT OF COLD CHAIN FACILITY BUSINESS IS ALLOWABLE OR NOT?

Replies (2)
Cold chain facility business is exempted under sec 35AD therefore if I am right then interest on capital of cold chain facility business is also exempted

https://resource.cdn.icai.org/31412sm_dtl_finalnew-vol3-may-nov14_cp13.pdf

please read question no 12 of the above mentioned link chapter

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