COMMISSIONER OF INCOME TAX, BOMBAY vs H. HOLCK LARSEN

The Supreme Court examined the classification of the respondent-assessee as either a 'dealer' or 'investor' in shares under the Income Tax Act, emphasizing the relevance of the assessee's intention in determining this status. The Court held that the frequency and nature of transactions, alongside the intention to nurse investments, are critical in establishing whether profits from share sales are taxable. The judgment affirmed the Tribunal's decision that the assessee was a dealer from the financial year 1954-55, thus making profits liable to tax under the Income Tax Act.