https://www.taxtmi.com/caselaws?id=197556 Profit on sale of land was treated as business income because the surrounding facts showed an adventure in the nature of trade rather than a passive capital investment. The decisive factor was the intention at the time of purchase: the land was bought, levelled at substantial cost, left uncultivated, and sold shortly thereafter, which indicated a commercial motive and prompt steps toward sale. The stated foreign exchange restriction on acquisition of agricultural land by a non-resident also supported the inference that the transaction was not an ordinary agricultural holding. The addition was therefore upheld and the profit was not assessable as capital gain. en-us Fri, 14 Nov 2014 00:00:00 +0530 Wed, 10 Jan 2018 08:11:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197556 Profit on sale of land was treated as business income because the surrounding facts showed an adventure in the nature of trade rather than a passive capital investment. The decisive factor was the intention at the time of purchase: the land was bought, levelled at substantial cost, left uncultivated, and sold shortly thereafter, which indicated a commercial motive and prompt steps toward sale. The stated foreign exchange restriction on acquisition of agricultural land by a non-resident also supported the inference that the transaction was not an ordinary agricultural holding. The addition was therefore upheld and the profit was not assessable as capital gain. Case-Laws Income Tax Fri, 14 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197556