TMI Blog1997 (11) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The facts of the case are that the assessee had received agricultural land measuring 6.447 hectare from her mother in 1976 ' who had bequeathed the property to her. The Government of Madhya Pradesh vide Notification dated 29-4-1983 acquired the said land along with other adjoining land for development and construction of residential colony by Jabalpur Development Authority. The assessee entered into an agreement with J.D.A. on 25-2-1984 and the assessee opted developed plots in her favour or in favour of her nominees in lieu of cash compensation equal to 20 per cent of the total area of the assessee's land acquired. In furtherance of the above agreement, the J.D.A. allotted 58 plots of different sizes. The assessee thereafter started se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never the agricultural land and a finding should be recorded that the land, which was acquired by the J.D.A. was not agricultural land. He further submitted that the transaction under consideration was an adventure in the nature of trade. The assessee had (sic) it was an activity carried on with the intention of the earning profit. All the 58 plots allotted to the assessee were sold by her from time to time. He submitted that she did not keep even a single plot for her own use. This action of the assessee is clearly indicative of the fact that the assessee ventured into an act of trade from the very beginning with full intention to earn profit. He further submitted that even the assessee did not get the plot allotted by J.D.A. registered i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Kallivayalil v. CIT [1976] 102 ITR 202 (Ker.). (c) ITO v. Rani Ratnesh Kumari [1980] 123 ITR 343 (AU.). (d) Asstt. CIT v. Administrator of the Estate of Late Shri E.E Dinshaw [1993] 47 ITD 232 (Bom.). (e) ITO v. Remi Perfumes (P.) Ltd [1990] 33 ITD 398 (Mad.) (sic). 6. We have carefully considered the arguments of both the sides and have perused the material placed before us. When a transaction is entered into with the primary or the sole intention of making profit, it would amount to adventure in the nature of the trade. To ascertain the intention of the party, one has to look into the facts and the surrounding circumstances. If on the consideration of all the facts, it appears that the sole intention of the party in purchasing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt place in connection with his official duties and was not in a position to carry on agricultural operations, he sold the land. The Tribunal found that he had sold the land after plotting it out in order to secure a better price and that he had not embarked on an adventure in the nature of trade. This was essentially a question of fact. The gain arising on sale of land was not, therefore, assessable as income from business." The ratio of the above decision would be squarely applicable-in the case under consideration before us. The various decisions relied upon by the learned D.R. are on different facts and, therefore, will not be applicable. In view of totality of the above facts and the legal position, we entirely agree with the CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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