Adventure in the nature of trade: sale of lease rights taxed after totality of facts showed commercial intent.

Profit from the sale of lease rights was held assessable as income arising from an adventure in the nature of trade, on a fact-specific assessment of the entire transaction. The court emphasized the circumstances at acquisition, the absence of construction despite prolonged possession, the lack of sufficient funds at the outset to develop the plot, and the later sale after market values had risen. It reiterated that an intention to resell at a profit is not by itself conclusive; whether a transaction is an adventure in the nature of trade depends on the totality of relevant facts. The Tribunal's conclusion was supported by evidence, and no interference was warranted in reference jurisdiction merely because another view was possible.

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Issues: Whether the profit arising from the sale of lease rights was assessable as arising from an adventure in the nature of trade.

Analysis: The transaction was examined on its own facts, with emphasis on the circumstances at the time of acquisition, the absence of construction despite possession of the plot for several years, the lack of sufficient funds at the inception to build the proposed structure, and the later sale when the market had risen. The settled principle applied was that the mere intention to resell at a profit is not conclusive, and the inference whether a transaction is an adventure in the nature of trade depends on the totality of relevant facts. On the material found, the Tribunal's conclusion was held to be supported by evidence, and no basis was found for interference in reference jurisdiction merely because another view was possible.

Conclusion: The question was answered in the affirmative and against the assessee.

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