COMMISSIONER OF INCOME TAX vs MUGNEERAM BANGUR & CO.

The Supreme Court ruled that the sale of a business as a going concern, which included land and goodwill, does not automatically attribute part of the slump price to the stock-in-trade, specifically land. The Court held that the assessees were engaged in a business of buying, developing, and selling land, and thus, the entire sale price was not taxable as profit from the sale of land. The decision of the Calcutta High Court was upheld, clarifying that no part of the slump price was attributable to the cost of land sold.