THE NEW JAHANGIR VAKIL MILLSCO., LTD. BHAVNAGAR vs THE COMMISSIONER OF INCOME-TAX, BOMBAY NORTH,KUTCH & SAURA

The Supreme Court held that the income from the sale of shares and securities by the assessee, a dealer in such assets, constituted a revenue receipt under the Income Tax Act. The Court ruled that profits should be computed based on the difference between the original cost price and the sale price, rejecting the appellant's claim that the income was a capital receipt. Additionally, the Court clarified that the principle of res judicata does not apply in taxation matters, allowing the tax authorities to assess the trading activity of the assessee from previous years for the current assessment year.