Adventure in the nature of trade applied to land sales where facts showed acquisition for resale at profit.

Profit from the purchase and sale of lands was treated as income from an adventure in the nature of trade where the surrounding facts showed a profit-making scheme rather than investment. The Tribunal relied on the purchase of adjoining lands, the absence of any use of the property by the assessee, the sale to the mills, and the finding that the lands were acquired with an intention of resale at a profit. Even in an isolated transaction, a purchase made with a view to resale is a relevant factor, though not conclusive by itself; the overall character of the transaction must be judged from all proved facts. On those facts, the profit was held taxable.

---

---

Issues: Whether the gain arising from the purchase and sale of the lands was assessable as income from an adventure in the nature of trade.

Analysis: The question turned on the facts found by the Tribunal and whether there was material supporting the inference that the transaction, though isolated, was not an investment but a scheme of profit-making. The surrounding circumstances included the purchase of adjoining lands, the absence of any use of the property by the assessee, the sale of the lands to the mills, and the Tribunal's finding that the property was acquired with an idea of resale at a profit. In an isolated transaction, the mere fact of purchase with a view to resale is a relevant factor, though not always conclusive; the overall character of the transaction must be judged from all proved facts.

Conclusion: The answer to the question was in the affirmative. The Tribunal had material to hold that the transaction was an adventure in the nature of trade, and the profit was taxable.

---