COMMISSIONER OF EXCESS PROFITS TAX,BOMBAY CITY vs SRI LAKSHMI SILK MILLS LTD.

The Supreme Court held that income derived from renting out a plant, which was originally acquired for business purposes, qualifies as income from business under the Excess Profits Tax Act, 1940, Section 2(5). The Court reversed the Bombay High Court's decision, stating that an asset does not lose its status as a commercial asset merely because it is temporarily idle or let out to another party. The income from such an asset remains assessable to excess profits tax, emphasizing that each case must be evaluated on its own circumstances.