NATIONAL CEMENT MINES INDUSTRIES, LTD. vs COMMISSIONER,OF INCOME-TAX, WEST BENGAL, CALCUTTA.

The Supreme Court held that the sum of Rs. 77,820 received by the appellants from Associated Cement Ltd. was of a revenue nature and thus assessable to income tax under the Indian Income-tax Act. The Court found that the deed did not constitute a sale or lease but was a profit-sharing arrangement, retaining certain rights in the land. The decision emphasized that the true nature of a receipt must be determined based on the commercial character of the transaction rather than its nomenclature, aligning with principles established in prior cases such as Foley v. Fletcher and State of Bihar v. Sir Kameshwar Singh.