Why is dividend on shares held as stock in trade treated as Income From Other Sources rather than Profits and Gains From Business and Profession??
Is there any logic?
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Dividend on shares held as stock in trade
Replies (5)
Dividend on shares held as stock in trade is treated as BUSINESS INCOME rather than income from other sources.
Such dividend is treated as business income....
You can also refer to the case of Excellent Commercial Enterprises and Investments Ltd. v CIT (Delhi High Court)-2005
In this case law the Judge said that normally the invome is treated as IFOS
It is normally treated as IFOS but where the company is trading in shares it will be treated as income under the head PGBP. Any income earned whether directly or incidentally from shares which are held as stock in trade will be treated as BUSINESS INCOME.
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