https://www.taxtmi.com/caselaws?id=38331 Surplus on compulsory acquisition of land was not taxable as business profit under section 10 of the Indian Income-tax Act, 1922 because the property was held as an investment and not as an adventure in the nature of trade. The character of the transaction had to be determined from the totality of surrounding facts, including the purchaser's intention, development or trading-style dealing with the property, any repeated course of property transactions, and whether the facts showed a commercial venture rather than mere investment. Here, the land was not developed or parcelled for sale, there was no established pattern of property trading, and borrowing for purchase did not by itself make the holding a trading venture. en-us Tue, 29 Nov 1977 00:00:00 +0530 Mon, 05 Apr 2010 14:17:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38331 Surplus on compulsory acquisition of land was not taxable as business profit under section 10 of the Indian Income-tax Act, 1922 because the property was held as an investment and not as an adventure in the nature of trade. The character of the transaction had to be determined from the totality of surrounding facts, including the purchaser's intention, development or trading-style dealing with the property, any repeated course of property transactions, and whether the facts showed a commercial venture rather than mere investment. Here, the land was not developed or parcelled for sale, there was no established pattern of property trading, and borrowing for purchase did not by itself make the holding a trading venture. Case-Laws Income Tax Tue, 29 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38331