M/s. RAJPUTANA TEXTILES (AGENCIES) LTD. vs THE COMMISSIONER OF INCOME-TAX, BOMBAY CITY

The Supreme Court held that the transaction involving the purchase and sale of shares by the assessee company constituted an adventure in the nature of trade, as it was not the intention of the assessee to retain the shares. The Court emphasized that the intention of the assessee must be considered in light of the legal requirements associated with trade. Furthermore, the Court clarified that it was exercising advisory jurisdiction under Section 8(5) of the Taxation on Income (Investigation Commission) Act, 1947, and could not entertain questions under Article 14 of the Constitution in this context.