COMMISSIONER OF INCOME-TAX, MYSORE vs BANGALORE TRANSPORT CO. LTD.

The Supreme Court held that under Section 10(1) of the Indian Income-tax Act, 1922, an assessee is liable to be taxed on profits or gains from a business even if the business is not actively carried on for the entire previous year. The Court clarified that income accrues when money or money's worth is received in the course of business, regardless of whether the business has ceased operations. The appeal against the High Court's decision was dismissed, affirming the tax liability of the assessee for the profits accrued prior to the closure of the business.