COMMISSIONER OF INCOME-TAX, CALCUTTA vs M/S. MOON MILLS LTD.

The Supreme Court ruled that under Section 10(2)(vii) of the Income-tax Act, 1922, the insurance compensation for destroyed capital assets is taxable only when actually received, not when it becomes receivable. The Court upheld the Appellate Tribunal's decision that the amount received in March 1950 could not be included in the taxable income for the assessment year 1949-50, as it was not received during that accounting year. The judgment clarified that the concept of assessable income differs from profit in a commercial sense, emphasizing the need for actual receipt for tax liability.