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The Commissioner Of Income Tax vs Shaw, Wallace And Co. on 14 March, 1932

The Commissioner of Income-tax v. Shaw Wallace and Company was quoted because the Privy Council there said that the word "income" connotes a periodical monetary return coming in with some sort of regularity, or expected regularity, from definite sources. The source is not necessarily one which is expected to be continuously productive but it must be one whose object is the production of a definite return, excluding anything in the nature of a mere windfall. It cannot be suggested that the allocation of the 20,000 shares of the Madura Mills was in the nature of a windfall. The contract fell within the scope of the memorandum of association of the company and it seems to me that the resulting benefit to the company must be classed as income.
Bombay High Court Cites 8 - Cited by 167 - Full Document
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