DR. K. GEORGE THOMAS vs THE C.I.T. KERALA, ERNAKULAM

The Supreme Court analyzed the applicability of Section 4(3)(vii) of the Indian Income Tax Act, 1922, regarding the taxation of casual or non-recurring receipts. The Court held that receipts linked to the exercise of a vocation, even if casual or voluntary, are taxable as income. The Court affirmed the High Court's ruling that the amounts received by the assessee were not mere personal gifts but were connected to his activities in propagating religious ideals, thus constituting taxable business income.