KARANPURA DEVELOPMENT CO., LTD. vs THE COMMISSIONER OF INCOME-TAX, WEST BENGAL

The Supreme Court held that the increased salami received by the assessee company from sub-leases constituted profits of business under the Indian Income-tax Act, 1922, specifically Sections 2(4) and 10. The Court determined that the company was indeed carrying on a business as per its memorandum of association by acquiring head leases and granting sub-leases. Consequently, the income from increased salami was liable to be included in the assessable income for income-tax purposes, affirming the High Court's decision.