JANKI RAM BAHADUR RAM vs COMMISSIONER OF INCOME TAX, CALCUTTA

The Supreme Court held that the profit from the sale of a jute press by the assessee, who primarily dealt in iron scrap and hardware, was not taxable under the Indian Income-tax Act, 1922, specifically Section 10. The Court established that an isolated transaction, even if profitable, does not constitute an adventure in the nature of trade unless accompanied by other circumstances indicating a trading intention. The High Court's affirmative answer to the question of tax liability was reversed, affirming that mere profit motive does not transform capital gains into taxable income.