https://www.taxtmi.com/caselaws?id=6678 A company's surplus from selling its own land was treated as capital realisation, not trading profit, because the asset had been held for years, the company mainly derived income from letting, and there was no repeated trading pattern, speculative venture, or real trading organisation. The memorandum power to deal in land was relevant but not decisive. The decisive factors were the nature of the asset, length of holding, overall conduct, and absence of trade-like features. Developing land into plots and selling it for a better price, without more, remained consistent with converting a capital investment into money rather than carrying on business or an adventure in the nature of trade. en-us Thu, 21 Oct 1965 00:00:00 +0530 Sun, 01 Feb 2009 05:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6678 A company's surplus from selling its own land was treated as capital realisation, not trading profit, because the asset had been held for years, the company mainly derived income from letting, and there was no repeated trading pattern, speculative venture, or real trading organisation. The memorandum power to deal in land was relevant but not decisive. The decisive factors were the nature of the asset, length of holding, overall conduct, and absence of trade-like features. Developing land into plots and selling it for a better price, without more, remained consistent with converting a capital investment into money rather than carrying on business or an adventure in the nature of trade. Case-Laws Income Tax Thu, 21 Oct 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6678