2014 (10) TMI 989

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....med. "Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the entire income of the appellant was assessable under the head "income from other sources" and not under the head "profits and gains of business or professions"? 3. The facts of the case are that the assessee filed return of income for assessment year 1997-98 declaring loss of Rs. 23,208/- which was processed under Section 143(1)(a) of the Income-tax Act. The case having been selected for scrutiny, a notice under Section 143(2) of the Act was issued to the appellant. Thereafter, the Assessing Officer completed the assessment at an income of Rs. 2,10,230/-. The assessee had shown income of Rs. 2,10,285.09 against which ex....

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....e meeting of the shareholders authorising the company to carry on business of financing and investment. The CIT(A) has confirmed the decision of the Assessing Officer. 5. Against the order of the CIT (A), the assessee preferred appeal before the Income-tax Appellate Tribunal. It was pointed out that the company had been incorporated in the year 1984 with the main object of carrying on business of the dealers, traders of chemicals, etc. Since the company could not start the business as per the main objects, a special resolution was passed by the shareholders at the extraordinary meeting held on 28.11.1984 authorising the company to do business of financing and for that purpose advance deposit or lend money from time to time. Thereafter, t....