https://www.taxtmi.com/caselaws?id=6214 Receipt acquired by purchase of proprietary or collection rights remains capital in character where the purchaser acquires no pre-existing right to the income; recovery of arrears of rent and royalty in such circumstances is not taxable as income. The document also states that surplus from resale of acquired land is not business income unless the primary facts reasonably support an inference of trading intent; short holding periods, profit on sale, and wide powers under the memorandum are insufficient by themselves. The stated principle is that an adventure in the nature of trade must be proved from the overall factual matrix, not assumed from isolated circumstances. en-us Tue, 05 May 1970 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6214 Receipt acquired by purchase of proprietary or collection rights remains capital in character where the purchaser acquires no pre-existing right to the income; recovery of arrears of rent and royalty in such circumstances is not taxable as income. The document also states that surplus from resale of acquired land is not business income unless the primary facts reasonably support an inference of trading intent; short holding periods, profit on sale, and wide powers under the memorandum are insufficient by themselves. The stated principle is that an adventure in the nature of trade must be proved from the overall factual matrix, not assumed from isolated circumstances. Case-Laws Income Tax Tue, 05 May 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6214