DALHOUSIE INVESTMENT TRUST COMPANY LTD. vs COMMISSIONER OF INCOME-TAX (CENTRAL),CALCUTTA

The Supreme Court held that the income derived from the sale of shares by the assessee was a revenue receipt and taxable under the Indian Income-tax Act, 1922, specifically under Section 2(4). The Court established that the transactions were an adventure in the nature of trade, as the shares were purchased and sold for profit rather than for investment purposes. Furthermore, the Court ruled that previous findings of the Tribunal regarding the nature of the transactions were not binding in subsequent assessment years.