Law:

Section:

Section 28(i) of the Income-tax Act, 1961 - Business Income - Chargeable as Business income v.Capital gain Where in respect of assessment year 1992-93, issue had become final to effect that income earned by assessee-company on sale of shares had been regarded as business income, having regard to shares held by assessee and further having regard to nature of business conducted by assessee, in absence of any material to show that assessee had changed his business, that it was not dealing with shares, and that shares were kept exclusively for investment purpose, instant Court could not take a different view from one taken by authorities below concurrently; thus, there was no substantial question of law to entertain this appeal [Assessment year 1993-94] [In favour of assessee] Matheson Bosanquet Enterprises Ltd. v. Dy. CIT [2009] 316 ITR 375 (Mad.) The assessee-company was engaged in the business of dealing in shares, etc. While completing the assessment, the Assessing Officer treated the income derived from sale of shares as business income as against capital gains. The Tribunal came to the conclusion that the intention of the assessee was to make gain by dealing in them. Further, applying the principle laid down by the Supreme Court in the case of Raja Bahadur Kamakhya Narain Singh v. CIT [1970] 77 ITR 253, it held that the income derived from the sale of the shares was only a business income. Held that in respect of the assessment year 1992-93, the issue had become final to the effect that the income earned by the assessee-company on the sale of shares had been regarded as a business income, having regard to the shares held by the assessee and further having regard to the nature of business conducted by the assessee. In the absence of any material to show that the assessee had changed his business, that it was not dealing with shares, and that the shares were kept exclusively for the investment purpose, the instant Court could not take a different view from the one taken by the authorities below concurrently. Thus, there was no substantial question of law to entertain the appeal. C V. Rajan and Subbaraya Iyer for the Appellant. J. Narayanasamy for the…

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