NEW ERA AGENCIES (PVT.) LTD., BOMBAY vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY 1,BOMBAY

The Supreme Court held that the profit made by the assessee on the sale of shares was business income under the Indian Income-tax Act, 1922. The Court found that the assessee had consistently treated profits and losses from share dealings as revenue, and the mere fact that it did not sell shares from 1949 to 1953 did not imply a change in the nature of the holding. The appeal was dismissed, affirming that the excess amount received from the sale of shares was not a capital accretion but part of business income.