1978 (10) TMI 62

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....use more than 50 per cent of the income was not from investment but from share dealing and share speculation. 3. The learned representative for the assessee, on the other hand submitted that the assessee's case is covered by s. 40A(c)(ii) of the Act which defines an investment company. the assessee has satisfied the necessary conditions and in such a case the AAC was justified in allowing the appeal of the assessee. He filed the balance sheet as on 30th Sept,., 1975. On the asset side of the balance sheet the investments amount to Rs. 29,95,249 as against the total of the balance sheet at Rs. 32,10,565. This, therefore, shows that the company is an investment company. Simply because it has carried the share dealing business also, it does....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ss assets. It does not mean that an investment company cannot carry on the share dealing or speculation business. But its main activities should be by way of investments in the categories specified in the definition of the investment company. In our opinion, the company has satisfied all the requirements or conditions of an investment company. This being the position, the AAC was justified in holding that the company was an investment company and it was entitled to the deduction of the expenses etc. 5. In the result, the departmental appeal stands dismissed. APPENDIX I IN THE OFFICE OF THE APPELLATE ASSISTANT COMMISSIONER OF INCOME TAX 'G' RANGE, CALCUTTA. Appeal No. 224/C-II/ 76-77 Date of Order : 6th June, 1977 Instit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....B(i). 2. The contention of the A/R. is correct. From the facts of the case I find that the main business of the company was by way of share sale and interest receipt by providing finances. Hence the company should have been treated as a financial company which enjoyed exemption with regard to disallowance of 15 per cent of expenditure by way of interest in respect of any deposit received by it. Under the circumstances, the disallowance of Rs. 13,425 is deleted. 3. In the result, the appeal is allowed. Sd/-(T.K. Das) AAC, Range-C, Calcutta. APPENDIX 2 PAN : 11-046-CZ-6748 Date of Order : 31st Aug., 1976. CAL/C II (I) . INCOME TAX DEPARTMENT Comp. District-II/Calcutta. P-9/76-7719 P-113 1. Year of ....