https://www.taxtmi.com/caselaws?id=36507 A company falls within section 23A of the Indian Income-tax Act, 1922 and section 104 of the Income-tax Act, 1961 only if its main or primary business consists in dealing in or holding investments. The expression "wholly or mainly" is read in that sense, and "investment" is understood in its popular rather than technical sense. Where the company also carries on substantial trading or agency business, and shares are held or retained mainly to support those business activities, it is not treated as an investment company. On the facts considered, the company's managing agency, cotton brokerage, ginning and pressing activities were determinative, so its dividend-yielding shares did not alter that character. en-us Tue, 25 Jul 1978 00:00:00 +0530 Mon, 22 Mar 2010 17:14:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36507 A company falls within section 23A of the Indian Income-tax Act, 1922 and section 104 of the Income-tax Act, 1961 only if its main or primary business consists in dealing in or holding investments. The expression "wholly or mainly" is read in that sense, and "investment" is understood in its popular rather than technical sense. Where the company also carries on substantial trading or agency business, and shares are held or retained mainly to support those business activities, it is not treated as an investment company. On the facts considered, the company's managing agency, cotton brokerage, ginning and pressing activities were determinative, so its dividend-yielding shares did not alter that character. Case-Laws Income Tax Tue, 25 Jul 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36507