CHAINRUP SAMPATRAM vs COMMISSIONER OF INCOME-TAX,WEST BENGAL.

The Supreme Court held that the profit from the valuation of stock-in-trade must be assessed at the place where the business is carried on, as per the principles of the Indian Income-tax Act, 1922, specifically under Section 4(1)(b) and Section 14(2)(c). The Court found that the High Court's conclusion that profit accrued in Bikaner was erroneous, asserting that the source of profit is the business itself, which is located in Calcutta. Thus, the profit was taxable in British India, affirming the assessment made by the Income-tax authorities.