M. R. GOYEL, PROP. M/S MILKHIRAM BROS. BOMBAY vs THE COMMISSIONER OF INCOME TAX, BOMBAY CITY 1, BOMBAY

The Supreme Court held that the amount received by the appellant for transferring the benefits of a contract for parachutes was a revenue receipt and not a capital receipt. The Court affirmed the Tribunal's finding that the appellant was engaged in a venture in the nature of trade, and thus the income of Rs. 1,87,000 was taxable. The High Court's decision to uphold the Tribunal's ruling was also confirmed, dismissing the appeal.