https://www.taxtmi.com/caselaws?id=36407 Surplus realised on purchase and recovery of decrees is taxable as business income only if the surrounding circumstances show an adventure in the nature of trade and a dominant profit-making intention at the time of acquisition. Mere proximity between purchase and realisation, or the fact that a surplus was earned, is insufficient. On the facts considered, the assessee's close connection with the debtor-company and related parties made a non-trading motive reasonably possible, including assisting the debtor-company and settling inter se liabilities. Because the revenue could not exclude that explanation, the transaction was not treated as trading in character and the surplus was not assessable as business profits. en-us Thu, 29 Jun 1978 00:00:00 +0530 Mon, 22 Mar 2010 11:42:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36407 Surplus realised on purchase and recovery of decrees is taxable as business income only if the surrounding circumstances show an adventure in the nature of trade and a dominant profit-making intention at the time of acquisition. Mere proximity between purchase and realisation, or the fact that a surplus was earned, is insufficient. On the facts considered, the assessee's close connection with the debtor-company and related parties made a non-trading motive reasonably possible, including assisting the debtor-company and settling inter se liabilities. Because the revenue could not exclude that explanation, the transaction was not treated as trading in character and the surplus was not assessable as business profits. Case-Laws Income Tax Thu, 29 Jun 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36407