Investment company classification determines exemption from statutory inter corporate investment limits for share trading entities. Inter corporate investment is subject to a statutory ceiling applicable to all shareholdings regardless of holding period, but that ceiling does not apply to an investment company. Whether a share trading company qualifies as an investment company is a question of fact determined by whether the whole or substantially the whole of its business consists of dealing in shares, securities, stock and debentures, and only such companies may rely on the exemption.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Investment company classification determines exemption from statutory inter corporate investment limits for share trading entities.
Inter corporate investment is subject to a statutory ceiling applicable to all shareholdings regardless of holding period, but that ceiling does not apply to an investment company. Whether a share trading company qualifies as an investment company is a question of fact determined by whether the whole or substantially the whole of its business consists of dealing in shares, securities, stock and debentures, and only such companies may rely on the exemption.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
