https://www.taxtmi.com/caselaws?id=49633 An isolated purchase and resale of contiguous land plots may constitute an adventure in the nature of trade where the totality of circumstances shows a commercial venture rather than investment. The governing test is whether the transaction has the essential characteristics of trade, assessed by factors such as the nature of the property, the manner of acquisition and disposal, the absence of income-yielding use, and whether the land was acquired with the sole intention of resale at a profit. On the stated facts, the planned series of purchases and resale to a particular purchaser supported treatment of the surplus as business income. en-us Mon, 24 Nov 1958 00:00:00 +0530 Tue, 22 Apr 2025 16:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49633 An isolated purchase and resale of contiguous land plots may constitute an adventure in the nature of trade where the totality of circumstances shows a commercial venture rather than investment. The governing test is whether the transaction has the essential characteristics of trade, assessed by factors such as the nature of the property, the manner of acquisition and disposal, the absence of income-yielding use, and whether the land was acquired with the sole intention of resale at a profit. On the stated facts, the planned series of purchases and resale to a particular purchaser supported treatment of the surplus as business income. Case-Laws Income Tax Mon, 24 Nov 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49633