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1964 (5) TMI 2 - SUPREME COURT
Whether there were materials for the Tribunal to hold, that the assessee is a banking concern assessable under section 10 for all the assessment years and not exempt ?
Held that:- It is difficult to hold that Styles' case applies to the facts of the case. A shareholder in the assessee-company is entitled to participate in the profits without contributing to the funds of the company by taking loans. He is entitled to receive his dividend as long as he holds a share. He has not to fulfil any other condition. His position is in no way different from a shareholder in a banking company, limited by shares. Indeed, the position of the assessee is no different from an ordinary bank except that it lends money to and receives deposits from its shareholders. This does not by itself make its income any the less income from business within section 10 of the Indian Income-tax Act. The answer to the question referred to the High Court should be in the affirmative.