Dividend income was taxable as income from other sources when shares were held for trading purpose

Court : 
HIGH COURT OF ALLAHABAD

Brief :
Section 56, read with section 28(i), of the Income-tax Act, 1961 - Income from other sources - Chargeable as (Income from other sources v. business income - Dividend) - Assessment year 1992-93 - Whether where an assessee does not purchase shares with a view to get dividend, but object of purchasing shares is to earn profit by sale of those shares and thus, earning of dividends is merely incidental result to main activity of purchase and sale of shares, receipt of dividends not be chargeable to income-tax under head 'profits and gains from business or profession' - Held, yes [Para 11] [In favour of revenue]

Citation :

Sangam Investments Ltd.
v.
Commissioner of Income-tax, Allahabad

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