https://www.taxtmi.com/caselaws?id=175582 A purchase and resale will be treated as an adventure in the nature of trade if the purchaser's intention at acquisition, judged from the cumulative surrounding circumstances, shows a view to resale rather than lasting investment. The court noted that the absence of a continuing business connection with Ceylon, purchase during a short visit, borrowing to finance the acquisition, limited reduction of debt from the income earned, and a quick resale at profit all pointed to a trading venture. Management of the property and receipt of income did not displace that inference. The surplus was therefore treated as business profit and held taxable as trading income against the assessee. en-us Thu, 12 Oct 1961 00:00:00 +0530 Fri, 27 Nov 2015 11:54:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175582 A purchase and resale will be treated as an adventure in the nature of trade if the purchaser's intention at acquisition, judged from the cumulative surrounding circumstances, shows a view to resale rather than lasting investment. The court noted that the absence of a continuing business connection with Ceylon, purchase during a short visit, borrowing to finance the acquisition, limited reduction of debt from the income earned, and a quick resale at profit all pointed to a trading venture. Management of the property and receipt of income did not displace that inference. The surplus was therefore treated as business profit and held taxable as trading income against the assessee. Case-Laws Income Tax Thu, 12 Oct 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175582