https://www.taxtmi.com/caselaws?id=37533 Profit on sale of land is taxable as business income only where, on the totality of circumstances, the Revenue proves that the land was acquired and dealt with as a trading asset rather than as an investment. The governing test considers the nature of the asset, the manner of acquisition and disposal, the absence or presence of repetitive dealing, and whether the property was treated as stock-in-trade. On the facts noted, the lands were acquired as agricultural lands with stated industrial use permissions, extensions were sought for industrial structures, and efforts were made to use the land for industrial purposes before sale. Those circumstances did not show a trading venture, so the gain was assessable as capital gain. en-us Tue, 30 Jan 1979 00:00:00 +0530 Tue, 30 Mar 2010 13:30:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37533 Profit on sale of land is taxable as business income only where, on the totality of circumstances, the Revenue proves that the land was acquired and dealt with as a trading asset rather than as an investment. The governing test considers the nature of the asset, the manner of acquisition and disposal, the absence or presence of repetitive dealing, and whether the property was treated as stock-in-trade. On the facts noted, the lands were acquired as agricultural lands with stated industrial use permissions, extensions were sought for industrial structures, and efforts were made to use the land for industrial purposes before sale. Those circumstances did not show a trading venture, so the gain was assessable as capital gain. Case-Laws Income Tax Tue, 30 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37533