Adventure in the nature of trade: rapid land plotting and resale supported treatment of profits as business income.

Land purchased, quickly plotted and resold within a few months was treated as yielding business income because the surrounding circumstances showed an intention to resell rather than to hold as a genuine investment. The fact-finding authorities' view in favour of the assessees was based on assumptions not adequately supported by the record. On those facts, the profits were correctly characterised as arising from an adventure in the nature of trade, and the Revenue's position was upheld.

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Issues: Whether the profits derived from the sale of the land constituted income from an adventure in the nature of trade.

Analysis: The assessees purchased land, plotted it shortly thereafter, and sold the plots within a few months. On the found facts, the surrounding circumstances were more consistent with an intention to resell than with a genuine investment. The view taken by the fact-finding authorities in favour of the assessees rested on assumptions not sufficiently supported by the record.

Conclusion: The profits were rightly treated as arising from an adventure in the nature of trade, and the finding in favour of the Revenue was upheld.

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