Adventure in the nature of trade requires trading intention; a single claim purchase was treated as a non-taxable casual receipt.

A single purchase of evacuee compensation claims was treated as a casual and non-recurring receipt, not business income. The surrounding facts showed no dealing in such claims as a business, and the claims were used to acquire a building for personal use. On that factual basis, the transaction lacked the trading intention needed to characterise it as an adventure in the nature of trade. The receipt was therefore not taxable as profit from business activity.

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Issues: Whether the amount of Rs. 10,937 arose from an adventure in the nature of trade or was a casual and non-recurring receipt not liable to tax as business income.

Analysis: The assessee entered into a single transaction for purchase of evacuee compensation claims and did not deal in such claims as a business. The claims were utilised for acquiring a building for personal use, and the surrounding facts supported the inference that the purchase was not made with the intention of trading in the claims for profit. On that factual foundation, the receipt could not be characterised as business profit from an adventure in the nature of trade.

Conclusion: The amount was rightly treated as a casual and non-recurring receipt and was not taxable as profit from an adventure in the nature of trade.

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