Supreme Court of India · 1953-09-23
SARDAR INDRA SINGH AND SONS LTD. vs COMMISSIONER OF INCOME-TAX,WEST BENGAL.
- Citation / case number
- SC 1952/52
- Court
- Supreme Court of India
- Petitioner
- SARDAR INDRA SINGH AND SONS LTD.
- Respondent
- COMMISSIONER OF INCOME-TAX,WEST BENGAL.
- Bench
- SASTRI, M. PATANJALI (CJ),DAS, SUDHI RANJAN,BOSE, VIVIAN,HASAN, GHULAM,BHAGWATI, NATWARLAL H.
Judgment text excerpt
The Supreme Court held that under Section 10 of the Income-tax Act, 1922, the surplus from the sale of shares and securities is assessable as profits if the sales are connected to the carrying on of the company's business. The Court clarified that it is sufficient for the sales to be part of the normal business operations, even if not solely for trading in securities. The appeal was decided in favor of the Income-tax Commissioner, affirming that the profits from the sale of shares were taxable income.