S. 28(iv) of Income Tax cannot be invoked without Business Income from Investment Shares: ITAT rules in Favor of Hero Motocorp

The Income Tax Appellate Tribunal (ITAT) ruled that Section 28(iv) of the Income Tax Act cannot be applied to income derived from investments in shares unless it is tied to business income. In the case of Hero MotoCorp, the tribunal decided that gains from the sale of shares, which are not directly related to business operations, do not qualify as business income under this section. This ruling clarifies that Section 28(iv) is not applicable to income from investments in shares unless there is a direct link to the business's operations, thereby influencing tax assessments related to such income.