Adventure in the nature of trade turns on total facts; prompt resale of property made surplus taxable as business income.

Whether the purchase and resale of the Brengun Factory site and buildings amounted to an adventure in the nature of trade depended on the totality of the surrounding facts, not on any single conclusive test. Relevant indicators included the nature of the asset, the manner of acquisition and disposal, financing through borrowings and pledges, short holding period, and the commercial pattern of sales to related industrial concerns. On those facts, the transaction was a planned profit-making scheme rather than a permanent investment, so the surplus on resale was taxable as business income.

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Issues: Whether the purchase of the site and buildings of the Brengun Factory was an adventure in the nature of trade and part of a profit-making scheme, so that the surplus on resale was taxable as business profit.

Analysis: The determination of whether a transaction is a capital investment or an adventure in the nature of trade depends on the total impression of all the relevant facts and circumstances. No single abstract test is conclusive. Relevant indicators include the nature of the commodity, the manner of acquisition and disposal, the assessee's financial position, the short interval between purchase and resale, the extent to which the property was used as an investment, and whether the transactions were organised in a commercial manner. On the facts, the property was acquired with limited own funds, financed largely by borrowings and pledges, and substantial portions were sold quickly to related industrial concerns. The surrounding circumstances showed a planned scheme for making profit rather than a permanent investment.

Conclusion: The purchase of the Brengun Factory site and buildings was an adventure in the nature of trade and the surplus was taxable as business income, against the assessee.

Ratio Decidendi: Whether a transaction amounts to an adventure in the nature of trade must be decided on the totality of circumstances, and where the facts show acquisition and prompt disposal in a commercial profit-making scheme, the surplus is taxable as business profit.

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