AIR 1953 MADRAS 166

Madras High Court

Hon'ble Judge(s): Satyanarayana Rao, P. Rajagopalan , JJ

(A) Income-Tax Act (11 of 1922) , S.2(4)— Adventure or concern in the nature of trade - Test to decide - Isolated transaction of purchase and re-sale - Intention to resell with profit - Not conclusive proof - Transaction held on facts to be adventure in the nature of trade. In the case of isolated transactions, there is no test of universal application or an infallible test to decide whether a given transaction is an adventure in the nature of trade within the meaning of S.2(4), Income-tax Act. It is really with reference to the facts held proved in each case that the difficult question has to be answered.(Para 14) Though a dominant or even a sole intention to resell is not by itself conclusive proof, it is certainly a relevant factor in deciding whether a particular transaction of purchase and resale was an adventure in the nature of trade, and in conjunction with other circumstances including the conduct of the assessee, such an intention might well establish beyond doubt that the adventure was in the nature of trade : 15 TC 333, Relied on. Case law referred.(Para 17) Held on facts that there was certainly sufficient evidence for the Tribunal to conclude that the transaction of the purchase and sale of certain group of estates by the assessee was an adventure in the nature of trade and that the ....