TMI Blog1984 (7) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... village in Krishnarajpura, Hubli, Bangalore north taluk. The land was located within the urbanized area adjacent to big factories like I.T.I., Kemp Son Co., etc. They purchased the land in 1962 from an agriculturist as agricultural land. But no attempt was made by the assessee or his son to cultivate the said land. The land was left fallow up to 1969, in which year the assessee obtained permission to convert the land for non-agricultural purposes. Immediately thereafter, he formed layout with the laid out plots as house sites and sold some of the sites to the workers in the nearby factories. The assessee contended that he made the investment in agricultural land with the intention of cultivating it and he never indulged in land business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is the cases on the border line that cause difficulty. If a person invests money in land intending to hold it, enjoys its income for some time, and then sells it at a profit, it would be a clear case of capital accretion and not profit derived from an adventure in the nature of trade. Cases of realisation of investments consisting of purchase and resale, though profitable, are clearly outside the domain of adventures in the nature of trade. In deciding the character of such transactions, several factors are treated as relevant. Was the purchaser a trader and were the purchase of the commodity and its resale allied to his usual trade or business or incidental to it? Affirmative answers to these questions may furnish relevant data for deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout more to be a venture in the nature of trade. However, the magnitude of the transaction of purchase, the nature of the commodity, the subsequent dealings and the manner of disposal may be such that the transaction may be stamped with the character of a trading venture. " From these decisions it will be clear that no-individual or single fact can be-taken as a decisive rule in finding out the correct character of the transaction. The cumulative effect of all the facts and circumstances have to be taken into consideration for the said purpose. Applying these principles we may now proceed to consider the facts found in the instant case. The assessee did not purchase the land by himself. He along with his son purchased the land as joi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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