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PETITIONER: RAGHUVANSHI MILLS LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX,BOMBAY CITY.
DATE OF JUDGMENT: 03/11/1952
BENCH: BOSE, VIVIAN BENCH: BOSE, VIVIAN MAHAJAN, MEHR CHAND DAS, SUDHI RANJAN HASAN, GHULAM
CITATION: 1953 AIR 4 1953 SCR 177 CITATOR INFO : F 1959 SC 814 (16,18,45,48) R 1965 SC1227 (6) E&D 1992 SC1495 (17,22,23)
ACT: Income-tax-Moneys received under "consequntial loss policies" -- Whether income-Assessability-Definition of income"-Exemption of receipt not arising out of business- Indian Income-tax Act, (XI of 1922). ss (6C), 4 (3) (vii).
HEADNOTE: The appellant mills had insured its building, plant and machinery with various insurance conapanies against fire and had also taken out some -policies of the type known. as " consequential loss policies " which insured against loss of profits, standing charges and agency commission. The mills were completely destroyed by fire and the appellant received certain sums of money under the consequential loss policies. Held, that sums of money received under these policies were "income"-within the meaning-of s. 2 (60) of the Indian Income-tax Act, and as they were inseparably connected with the ownership and conduct of the business of the company and arose I from it, they were not exempt under s. 4 (3) (vii), and were therefore assessable to income-tax under the Ind...