RAJA BAHADUR KAMAKHYA NARAIN SINGH vs COMMISSIONER OF INCOME-TAX BIHAR AND ORISSA

The Supreme Court held that the profits from the sale of shares and gold by the assessee were not taxable as trading profits under the Income Tax Act. The Court emphasized that the nature of the transactions must be assessed to determine if they were in the ordinary course of business, citing the test of whether the shares and securities were treated as stock-in-trade. The Court found that the Tribunal's conclusion, supported by the High Court, that the transactions were trading in nature was not justified, given the context of the transactions during a tumultuous period.