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2012 (8) TMI 427 - HC - Income TaxDividend income earned by investment company from the shares held as stock in trade - Business income or Income from other sources - set off of business loss against dividend Income - Held that:- In Investment Ltd vs CIT (1970 (4) TMI 15 - SUPREME COURT), it has been held that method of accounting regularly employed by the assessee can be discarded only if the taxing authority is of the opinion that the income earned cannot be properly deduced therefrom. The method employed by the company in valuing stock at cost and describing such stock in the balance-sheet as "investments", were held to be not decisive of the fact that the stock valued was not stock-in-trade. The finding of the first appellate authority as well as the Tribunal that the shares held by the assessee, which earned dividend income, constituted stock-in-trade; does not necessarily give rise to a question of law. The appellate authorities having concurred on facts that the dividend income earned by the assessee was eligible to be brought forward as loss of the previous years, in our opinion, cannot be interfered with in this appeal - Decided in favor of assessee.
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