SANGAM INVESTMENTS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appellant is in the business of purchase and sale of shares and also derives income from dividend, commission and interest. For the assessment year 1992 -93 the appellant filed a return showing nil income. The appellant showed income from dividend, commission and interest under the head "profits & gains from business or profession".

(2.) THE Assessing Officer did not accept the submission of the appellant and while passing an order under Section 143(3) of the Income Tax Act (hereinafter referred to as the Act) held that the income disclosed by the appellant from dividend, commission and interest was liable to be assessed under the head "Income from other sources" and not under the head "profit & gains from business or profession"

(3.) INCOME Tax Department, being aggrieved, filed a second appeal before the Tribunal, which was allowed. The Tribunal set aside the order of the appellate authority and restored the order of the Assessing Officer holding that the income of the assessee derived from dividend, commission etc was liable to be assessed under the head "Income from other sources" under Section 56(2) of the Act. The assessee, being aggrieved by the order of the Tribunal, has filed the present appeal under Section 260A of the Act, which was admitted on the following substantial questions of law: