NANIKANT AMBALAL MODY vs COMMISSIONER OF INCOME-TAX, BOMBAY

The Supreme Court held that the receipts from outstanding professional dues received by an advocate after cessation of practice were not chargeable to tax under Section 10 of the Indian Income-tax Act, 1922, as the advocate maintained accounts on a cash basis and did not carry on the profession during the relevant accounting years. The Court clarified that income cannot be taxed under Section 12 if it is already included under another head, emphasizing that the heads of income are mutually exclusive. The appeal was allowed, and the tax assessment was set aside.