COMMISSIONER OF INCOME TAX, CALCUTTA vs KARAM CHAND THAPAR AND OTHERS

The Supreme Court addressed the issue of whether amounts received by the assessee as 'under-charges' constituted trading receipts under the Income Tax Act. The Court held that these amounts were indeed trading receipts and thus assessable as income for the assessment years 1953-54 to 1962-63, rejecting the assessee's claim for exemption. The ruling emphasized that the absence of evidence supporting the claim of non-income status for these receipts led to the conclusion that they were taxable under Section 4 of the Income Tax Act.