Supreme Court of India · 1954-11-01
NAVINCHANDRA MAFATLAL vs THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY.
- Citation / case number
- SC 1952/9
- Court
- Supreme Court of India
- Petitioner
- NAVINCHANDRA MAFATLAL
- Respondent
- THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY.
- Bench
- MAHAJAN, MEHAR CHAND (CJ),DAS, SUDHI RANJAN,HASAN, GHULAM,BHAGWATI, NATWARLAL H.,AIYYAR, T.L. VENKATARAMA
Judgment text excerpt
The Supreme Court ruled that Section 12-B of the Indian Income-tax Act, 1922, which imposes tax on 'Capital gains', is not ultra vires the Government of India Act, 1935. The Court held that 'Capital gains' falls within the definition of 'income' as per item No. 54 of List I of the Seventh Schedule of the Government of India Act, 1935. It emphasized that the interpretation of 'income' should be broad and in its ordinary grammatical sense, rejecting the notion of a strict separation between income and capital gains.