2001 (6) TMI 53

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.... 1961, the Tribunal has referred the fallowing question : "Whether, on the facts and in the circumstances of the case and on a proper interpretation of section 32AB, the assessee was eligible for the deduction iii respect of the dividend income ?" The assessee is the owner of 13 tea gardens. All these are situated in upper Assam. The assessee derives income from these tea gardens. In additio....

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.... Act, 1956. And as the assessee has shown these dividends as part of the business profits in the profit and loss account prepared as per the requirements of the Companies Act, the assessee is entitled for deduction under section 32AB, on the dividend income also. Some Tribunal decisions were also referred to wherein a similar view has been taken by the Tribunal. None appeared for the assessee. ....

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....e owner of the tea gardens and it derives income from selling tea leaves. The investment in the shares is not a business of the assessee. The deduction under section 32AB is allowable only on the basis of profit from "business or profession" and not from the income from other sources. When investment in shares is neither a business nor a profession of the assessee, the dividend income received fro....