JUGGILAL KAMLAPAT, KANPUR vs COMMISSIONER OF INCOME-TAX, LUCKNOW

The Supreme Court held that the profits realized from the sale of shares by the assessee firm were taxable as revenue income rather than capital gains. The Court determined that the transactions were part of a well-planned scheme to earn profits, thus characterizing them as commercial transactions. The ruling clarified that whether a transaction constitutes an adventure in the nature of trade is a mixed question of law and fact, relying on the principles established in Ram Narain Sons (P) Ltd. v. C. I. T., Bombay, 41 I.T.R. 534.