TaxTMI 
TaxTMI 
2002 (7) TMI 61
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....from medical profession. In her return for the relevant assessment year she declared an income of Rs. 1,14,330 as income from profession. During the course of assessment proceedings, the Assessing Officer noticed that during the previous year the assessee had received a sum of Rs. 26,32,000 on the sale of some shops and flats but had not declared any capital gains on the plea that the sale consideration had been deposited in the specified capital gains bank account in terms of section 54(2) of the Act. Rejecting the stand of the assessee that the property was residential and the entire sale proceeds having been deposited in the specified account, no capital gain was exigible to tax, the Assessing Officer held that the amount received by the....
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....sessment year 1991-92 and as stated before us the remaining shops were sold in 1999-2000. In other words, there is a substantial gap between the date of purchase, commencement of construction, sale of part of the property as also the sale of the remaining part thereof. In other words, after making the purchase in June, 1980, it took the assessee a good period of 19-20 years to dispose of the property and in case it was to be a business proposition then no prudent person would have waited for such a long period to dispose of a property and we, therefore, come to the conclusion that the surplus resulting from the sale has to be treated as capital gains and not arising from an 'adventure in the nature of trade' as held by the Commissioner of I....
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....t whether a particular transaction is in the nature of trade or not. It was said that a single plunge may be enough provided it is shown to the satisfaction of the court that the plunge is made in the waters of the trade, but mere purchase/sale of shares-if that is all that is involved in the plunge-may fall short of anything in the nature of trade. Whether it is in the nature of trade will depend on the facts and circumstances. Dealing with the expression "adventure in the nature of trade" in Raja Bahadur Kamakhya Narain Singh v. CIT [1970] 77 ITR 253, the apex court said that if the transaction is in the ordinary line of the assessee's business, there would hardly be any difficulty in concluding that it was a trading transaction. But wh....