UNIVERSAL PLAST LTD. vs COMMISSIONER OF INCOME TAX,CALCUTTA

The Supreme Court addressed the interpretation of income classification under the Income Tax Act, 1961, specifically under Section 2(24) and Section 256. The Court held that income derived from leasing out a factory constitutes business income if it is part of the regular business activities of the assessee, overturning the High Court's negative ruling. The appeals from Universal Plast Limited and Guntur Merchants Cotton Press Company Limited were allowed, establishing that such income should be treated as business income.