A Corporate Law Case
According to income tax act then enforced 60% of agriculture income was totally exempted from tax liability and rest 40% was taxable. Bachaa was the shareholder of a tea manufacturing company. Bachaa receive dividend income for his share and he said that 60% should be regarded as agriculture income and should be exempted from the tax liability but the court held that his dividend income fully taxable because tea company is a separate legal entity from Bachaa and the income of the company is totally different from income of Bachaa.
According to income tax act then enforced 60% of agriculture income was totally exempted from tax liability and rest 40% was taxable. Bachaa was the shareholder of a tea manufacturing company. Bachaa receive dividend income for his share and he said that 60% should be regarded as agriculture income and should be exempted from the tax liability but the court held that his dividend income fully taxable because tea company is a separate legal entity from Bachaa and the income of the company is totally different from income of Bachaa.
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