https://www.taxtmi.com/caselaws?id=24994 Surplus from sales of land is not taxable as an adventure in the nature of trade unless the Revenue proves that, at the time of purchase, the assessee intended to trade in the land; on the facts, the surrounding circumstances did not establish a trading motive, so the receipts were not treated as trading profits. By contrast, land ceases to be agricultural for capital gains purposes when its real character at the date of sale, including intended user and surrounding circumstances, shows contemplated non-agricultural development; where permission for non-agricultural use had been obtained and sale agreements were for building purposes, the Ajni land was not agricultural land and its surplus was taxable. en-us Wed, 28 Jan 1987 00:00:00 +0530 Sat, 23 Jan 2010 16:22:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24994 Surplus from sales of land is not taxable as an adventure in the nature of trade unless the Revenue proves that, at the time of purchase, the assessee intended to trade in the land; on the facts, the surrounding circumstances did not establish a trading motive, so the receipts were not treated as trading profits. By contrast, land ceases to be agricultural for capital gains purposes when its real character at the date of sale, including intended user and surrounding circumstances, shows contemplated non-agricultural development; where permission for non-agricultural use had been obtained and sale agreements were for building purposes, the Ajni land was not agricultural land and its surplus was taxable. Case-Laws Income Tax Wed, 28 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24994