https://www.taxtmi.com/caselaws?id=20064 For income-tax purposes, the character of land is determined by its factual nature and user on the date of transfer, including actual cultivation, surrounding circumstances, and whether non-agricultural use has already commenced; lease descriptions or land-revenue entries are not decisive. A transfer is not an adventure in the nature of trade merely because profit is expected; the key inquiry is whether the asset was dealt with as trading stock or as a capital asset. On the stated facts, the land was treated as non-agricultural, the transfer was not treated as trading activity, capital gains treatment followed, and the lease rent was assessed under Other sources. en-us Mon, 11 Oct 1993 00:00:00 +0530 Wed, 11 Nov 2009 14:12:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20064 For income-tax purposes, the character of land is determined by its factual nature and user on the date of transfer, including actual cultivation, surrounding circumstances, and whether non-agricultural use has already commenced; lease descriptions or land-revenue entries are not decisive. A transfer is not an adventure in the nature of trade merely because profit is expected; the key inquiry is whether the asset was dealt with as trading stock or as a capital asset. On the stated facts, the land was treated as non-agricultural, the transfer was not treated as trading activity, capital gains treatment followed, and the lease rent was assessed under Other sources. Case-Laws Income Tax Mon, 11 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20064