COMMISSIONER OF INCOME-TAX POONA vs M/s. MANNA RAMJI & CO.

The Supreme Court held that compensation received for loss of earnings due to requisition of business premises is taxable as revenue receipts under the Indian Income Tax Act, 1911. The Court reasoned that since the respondent continued its business in the same premises and was not permanently deprived of its income source, the compensation represented profits that would have been earned. The appeal by the revenue was allowed, affirming the High Court's decision that the compensation was not a capital receipt.