9911796707
|
Home
Issues involved:
The appeal concerns the eligibility of income from dividends, profits on sale of investments, and interest on deposits as profits from eligible business under section 32AB of the Income-tax Act, 1961. Summary: The appeal before the High Court of BOMBAY involved the Department questioning whether income from dividends, profits on sale of investments, and interest on deposits could be considered profits from eligible business under section 32AB of the Income-tax Act, 1961. The assessee, a club, claimed that these incomes were part of its business profits computed under the Companies Act. The Assessing Officer initially rejected this claim based on a clarification from the Institute of Chartered Accountants. However, the Tribunal, after examining the accounts, concluded that the dividend income was indeed part of the business income of the assessee, thus allowing its inclusion in profits from eligible business. The Department appealed this decision. The High Court noted that the Department's argument hinged on the contention that the items in question did not constitute profits from eligible business. However, the Tribunal's factual finding was that the dividend income formed part of the business income of the assessee, leading to the conclusion that no substantial question of law arose in the appeal. Additionally, a new point raised by the Department regarding the applicability of section 37(2B) was not permitted as it was not included in the memo of appeal. Consequently, the appeal was dismissed, with no costs awarded. The judgment emphasizes the importance of considering the specific facts of each case when interpreting legal provisions and highlights the significance of factual findings in determining the eligibility of certain incomes as profits from eligible business under the Income-tax Act.
|
