https://www.taxtmi.com/caselaws?id=60295 Dividend from shares held as stock-in-trade may retain business-income character for the limited purpose of setting off brought forward business losses. The note also states that a company's status as an investment company under the Explanation to section 73 must be tested by reference to gross total income before Chapter VI-A deductions. Applying that test, dividend income exceeded business income, so the company was treated as an investment company and the Explanation to section 73 did not apply. The assessee was therefore entitled to set off earlier business losses against dividend income, and the disallowance made by the lower authorities was unsustainable. en-us Wed, 28 Dec 1988 00:00:00 +0530 Tue, 04 Jan 2011 15:38:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60295 Dividend from shares held as stock-in-trade may retain business-income character for the limited purpose of setting off brought forward business losses. The note also states that a company's status as an investment company under the Explanation to section 73 must be tested by reference to gross total income before Chapter VI-A deductions. Applying that test, dividend income exceeded business income, so the company was treated as an investment company and the Explanation to section 73 did not apply. The assessee was therefore entitled to set off earlier business losses against dividend income, and the disallowance made by the lower authorities was unsustainable. Case-Laws Income Tax Wed, 28 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60295