RAGHUVANSHI MILLS LTD. vs COMMISSIONER OF INCOME-TAX,BOMBAY CITY.

The Supreme Court held that sums received under consequential loss policies are considered 'income' under Section 2(60) of the Indian Income-tax Act, 1922, and are assessable to income-tax as they are closely linked to the business operations of the company. The Court clarified that these receipts do not qualify for exemption under Section 4(3)(vii) of the Act. The judgment of the Bombay High Court was affirmed, establishing that the definition of 'income' must be contextually applied and is not limited to regular monetary returns.