https://www.taxtmi.com/caselaws?id=19221 Sections 23A of the 1922 Act and 104 of the 1961 Act were treated as operating on substantially similar footing for determining whether a company was one whose business consisted wholly or mainly in holding investments. The controlling test was whether the company's primary business was a real, substantial and systematic activity of dealing in or holding investments; the memorandum of association was not conclusive. The inquiry turned on the actual nature of the business, the source and character of income, and the purpose of maintaining the shareholdings. On the stated facts, continued holding of shares and receipt of dividends without any other business activity brought the company within the definition of an investment company. en-us Wed, 04 Jan 1995 00:00:00 +0530 Wed, 04 Nov 2009 16:50:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19221 Sections 23A of the 1922 Act and 104 of the 1961 Act were treated as operating on substantially similar footing for determining whether a company was one whose business consisted wholly or mainly in holding investments. The controlling test was whether the company's primary business was a real, substantial and systematic activity of dealing in or holding investments; the memorandum of association was not conclusive. The inquiry turned on the actual nature of the business, the source and character of income, and the purpose of maintaining the shareholdings. On the stated facts, continued holding of shares and receipt of dividends without any other business activity brought the company within the definition of an investment company. Case-Laws Income Tax Wed, 04 Jan 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19221