Adventure in the nature of trade: profit from isolated gold resale taxed as business income, not casual receipt.

An isolated purchase and resale of gold was treated as an adventure in the nature of trade because the decisive test was the object of acquisition. The Court held that repetition, continuity, or further processing was not necessary where the commodity was bought solely for resale at a profit rather than as a capital investment or for personal use. On the facts, the assessee used interest-bearing funds to buy a large quantity of gold with the sole intention of later sale at a profit, bringing the transaction within business activity. The profit was therefore assessable as business income and not exempt as a casual receipt.

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Issues: Whether the profit arising from the isolated purchase and resale of gold was an adventure in the nature of trade and therefore taxable as business income, and not exempt as a casual receipt.

Analysis: The transaction was examined in the light of the statutory definition of business, which includes an adventure or concern in the nature of trade. The decisive enquiry was whether the gold was acquired as a capital investment or solely for resale at a profit. The Court held that repetition of transactions, continuity of dealing, or further processing of the commodity were not necessary where the purchase itself was made with no purpose other than resale at a profit. On the facts, the assessee withdrew interest-bearing funds, purchased a large quantity of gold, and the finding of fact was that the gold was bought with the sole object of selling it later at a profit. That brought the transaction within the concept of a commercial adventure. The Court distinguished cases of mere investment or later sale of property originally acquired for personal use or capital purposes.

Conclusion: The purchase and sale of gold was an adventure in the nature of trade, the profit was assessable as business income under Section 10, and it was not exempt under Section 4(3)(vii).

Ratio Decidendi: A single purchase and resale outside the ordinary line of business is an adventure in the nature of trade where the property is acquired solely for resale at a profit and not for personal use or capital investment.

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