SEVANTILAL MANEKLAL SHETH vs COMMISSIONER OF INCOME-TAX (CENTRAL),BOMBAY

The Supreme Court upheld the High Court's decision that the amount of Rs. 70,860, resulting from the sale of shares transferred to the appellant's wife, was properly included in the appellant's income under Section 16(3)(a)(iii) of the Income Tax Act, 1922. The Court clarified that there is no logical distinction between income arising from the transferred asset and income arising from the sale of that asset, affirming that profits or gains from the sale are indeed income. The Court rejected the appellant's argument that capital gains should not be included as income under the statute.