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MESSRS LUCKY CEMENT LTD. versus COMMISSIONER OF INCOME TAX, ZONE COMPANIES

The proceeds from the Sections 22 and 30 sources were invested with financial institutions to include a cement company to set up a cement plant for the construction and sale of a cement company because it had already started the enterprise. Many funds were collected and since the funds were high, instead of stabilizing the funds, they used them permanently, invested in various financial institutions, made profits on it, withdrew them and then made better returns. Le rein imposed on others, the Assessing Officer cited a memorandum of association clause. Namely, the return received from the financial institutions as income from the business is justified. Such profit cannot be termed as business income because the sole concern of the company and setting up a cement plant for the manufacture and sale of business cement. And was not making a profit by investing his funds in a finance company. The return from the financial institution for better profit to the institution or other was the income at the same time, motivating for all intents and purposes, except when it is not in line with the definition of business of the company, a reference to a memorandum of association Cannot change its nature, since it cannot be extended to include any other business. The company was incorporated for tax references and was answered accordingly famous lower court advocate from Ranipur lawyer