G.S. Arora (no) (98 Points)
18 January 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178099 Points)
Replied 18 January 2017
Depends upon the trading pattern. If traded occassionally, the same can be treated as IFOS, otherwise as PGBP.
G.S. Arora
(no)
(98 Points)
Replied 18 January 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178099 Points)
Replied 18 January 2017
Their Lordships of Supreme Court in the case of Narain Swadeshi Weaving Mills v/s. Com. of EPT 26 ITR 764/765 has held that the term business can note some real substantial and systematic or organised course of activity or conduct with a set purpose. That whether a particular source of income is business or not must be decided according to our ordinary notion as to what a business is. It is true that there is authority for the proposition that even a single or isolated transaction can in a conceivable case amount to business provided that it bears the characteristics of trade. However in view of the fact that use of plural, speculative transactions in explanation 2 to Section 28 clearly shows that in order to constitute speculation business within terms of that explanation, a single transaction of speculation should not be treated as speculation business
Courtesy: https://www.lexsite.com/services/network/caa/contro1.sH T M L
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 19 January 2017
CAclubindia
