Gross income - scheme of profit making

Question 1

Facts:
The company established a trust to purchase shares and administer them for the benefit of the employees. This trust was also compelled to repurchase shares from employees who were required to forfeit their holdings.

Answer 1

PicknPay Employee Share Purchase Trust

Issue:
Were the profits made by the share trust on the share dealings capital or revenue in nature?

Principle:
The scheme of profit-making is essential to classify proceeds as revenue in nature.