Business income classification prevails where receipts form part of trading profits rather than securities income.

The receipt was treated as business income because, on the facts referred, it formed part of the assessee's business receipts rather than income derived from securities. The statutory distinction between securities income under Section 8 and business income under Section 10 of the Income-tax Act, 1922 was applied to classify the amount under the proper head of income, and it was held taxable as business income in favour of the Revenue.

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Issues: Whether the sum received by the assessee was taxable as income from securities under Section 8 of the Income-tax Act, 1922, or as business income chargeable under Section 10 of that Act.

Analysis: The receipt was examined in the light of the facts set out in the reference order, and the reasoning adopted was that the amount formed part of the assessee's business receipts rather than income derived from securities. The statutory distinction between securities income and business income was applied to determine the proper head under which the sum fell to be computed.

Conclusion: The amount was held to be business income chargeable under Section 10 and not taxable as securities income under Section 8, in favour of the Revenue.

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