KARAM CHAND THAPAR & BROS. (P) LTD. vs COMMISSIONER OF INCOME-TAX, (CENTRAL)CALCUTTA

The Supreme Court held that profits from the sale of coal were taxable as revenue under the Income Tax Act, 1922, specifically under Section 24(1) and (2). The Court determined that the transaction was part of the taxpayer's business operations, thus classifying the gains as revenue rather than capital. Furthermore, the loss from the sale of the ice factory was not deductible under Section 24(2) as the business had ceased before the next accounting year, affirming the lower courts' decisions.