Solitary land purchase taxed as capital gain, not business income, where no trading scheme or regular property dealing was shown.

Profit from a solitary purchase of land later acquired under land acquisition proceedings was not taxable as business income because there was no material showing a business of buying and selling property for profit. The decisive factor was the assessee's intention, and the record showed no scheme, regular dealing, or trade-like activity. In the absence of business or profession, the land was not excluded from the definition of capital asset, so the gain could not be treated as an adventure in the nature of trade. The departmental appeal failed.

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Issues: Whether the profit arising from a solitary purchase of land, later acquired under land acquisition proceedings, was taxable as business income as an adventure in the nature of trade or as capital gains.

Analysis: The transaction was a single purchase of land, with no material showing that the assessee carried on any business of buying and selling properties for profit. The decisive factor was the assessee's intention, and there was no evidence of any scheme or regular activity amounting to trade. In the absence of business or profession, the property could not be excluded from the definition of capital asset, and the profit could not be treated as business income under the income-tax law.

Conclusion: The profit was not assessable as business income and the departmental appeal failed.

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