https://www.taxtmi.com/caselaws?id=8735 The Gujarat HC applied the totality-of-circumstances test to determine whether a land transaction was an adventure in the nature of trade or a realisation of investment. For the three assessees who had no land-dealing business, were non-residents, and made an isolated purchase, the record did not show a sole trading intention at acquisition, so the surplus was capital gain. By contrast, D. S. Virani had an established pattern of buying, developing, plotting, and reselling land at profit, showing a real estate trading business; his share of the same transaction was therefore business income. A mere intention to resell at a profit was held insufficient by itself to convert investment into trading stock. en-us Thu, 16 Sep 1971 00:00:00 +0530 Wed, 03 Jun 2009 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8735 The Gujarat HC applied the totality-of-circumstances test to determine whether a land transaction was an adventure in the nature of trade or a realisation of investment. For the three assessees who had no land-dealing business, were non-residents, and made an isolated purchase, the record did not show a sole trading intention at acquisition, so the surplus was capital gain. By contrast, D. S. Virani had an established pattern of buying, developing, plotting, and reselling land at profit, showing a real estate trading business; his share of the same transaction was therefore business income. A mere intention to resell at a profit was held insufficient by itself to convert investment into trading stock. Case-Laws Income Tax Thu, 16 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8735