“Section 26(5)(a)”
The decision most relied on for Section 26(5)(a) is Narain Swadeshi Weaving Mills v. Commissioner of Excess Profits Tax (26 ITR 765), cited in 64 judgments on BharatTax.
Leading authorities on Section 26(5)(a)
The definition of 'business' is of wide import, encompassing any trade, commerce, manufacture, or adventure in the nature of trade. Even a single and isolated transaction can constitute an 'adventure in the nature of trade' if it bears the clear indicia of trade, and no fixed formula can be evolved to determine the character of such isolated transactions.
Subsidies received under schemes like the Focus Marketing Scheme (FMS) are classified as capital receipts, not taxable as income, if their purpose is to enhance India's export potential and not to meet day-to-day business expenditure or competition costs.
An assessee is not estopped from claiming that a single assessment should have been made under Section 26(1) even if they previously filed separate returns for parts of a single accounting period, as there cannot be an estoppel against a statute.
