Does it mean that a partnership firm and a limited company cannot derive income from CG as all the assets held by them will be for business only?
No. If the partnership firm or the limited company is holding the property which is not being used for any business activity but, say, let on hire and income from which is taxed under the head “Income from house Property” or “Income from Other Sources” will be covered under the definition of IA. Moreover, the firm / the company might have made investment in shares and securities which are not held as stock-in-trade. Periodical income from these sources is proposed to be taxed under the head “Income from Residual Sources”. In all such cases, the provisions relating to CG will be applicable.
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