Expenses claimed against interest income acceptable

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 Our private limited company stopped manufacturing and trading activities because there was no demand for our products 10 years ago, when it had accumulated and unabsorbed losses of over Rs 1 lakh.

 Since then, the only source of income has been the interest from a fixed deposit with a bank. After setting off expenses like office rent, printing and stationery, audit fee and the profession tax against the interest income, a small amount of profit is earned, which again is being set off against the unabsorbed losses.

 Now the company