Summarize the following court judgment. Appeal No. 347 of 1955. Appeal by special leave from the judgment and order dated March 26	 1954	 of the Income tax Appellate Tribunal	 Calcutta	 in Income tax Appeal No. 5263 of 1953 54. A. V. Viswanatha Sastri and Sukumar Chosh	 for the appellant. G. K. Daphtary	 Solicitor General of India	 B. Ganapathy	 R. H. Dhebar and D. Gupta	 for the respondent. May 4. The Judgment of Bhagwati and Sinha	 JJ.	 was delivered by Sinha	 J. Kapur	 J. delivered a separate Judgment. 848 SINHA	 J. The only question for determination in this appeal by special leave	 is whether the solitary transaction in respect of about three quarters of an acre of land in the suburbs of Calcutta	 was an adventure in the nature of trade and	 therefore	 liable to income tax. The assessee is the appellant. He challenges the correctness of the order of the Income tax Appellate Tribunal	 Calcutta Bench	 Calcutta	 dated March 26	 1954	 passed in I.T.A. 5263 of 1953 54	 in respect of the Assessment year 1948 49	 reversing that of the Appellate Assistant Commissioner of Incometax	 Range " C "	 Calcutta	 dated September 5	 1953. The facts of this case leading upto this appeal are as follows: The appellant is engaged in various types of business activities	 being a share holder and Director or Managing Director of several limited liability concerns	 and is also a partner in the firm known as " Pioneer Engineering Works ". In respect of his income during the previous two assessment years	 the appellant was assessed to income tax on the sums of Rs. 53	000/ (1946 47) and Rs. 59	000/ (1947 48). The appellant holds investments in shares of the value of Rs. 2	45	000/ 	 out of which	 according to the assessee	 shares of the value of Rs. 1	95	000/ 	 though standing in his name	 belong to other members of his family	 including his father and his wife. The Hindusthan Co operative Insurance Society Limited	 of Calcutta	 (hereinafter referred to as " the Society ")	 acquired a block of about 578 bighas of land lying between Diamond Harbour Road and Tolly 's Nullah	 within the Municipal limits of the Corporation of Calcutta	 between the years 1940 and 1942. The Society decided to level the land thus acquired and to open out roads and after developing the same	 it subdivided it into small plots and sites in different blocks suitable for residential purposes under its scheme called " The New Alipore Land Development Scheme No. XV ". The Society offered such plots for sale. One such plot	 being plot No. 77 in block " E " of the said Scheme	 was agreed	 by an agreement dated January 10	 1946	 to be sold to the assessee at the rate of Rs. 2	550/ per katha. In pursuance of the said agreement	 the assessee paid to the Society	 a sum of 849 Rs. 13	099/ being 10% of the estimated price of the plot with an approximate area of 51 kathas	 which subsequently	 on exact measurement	 was found to be 45 56 kathas. Subsequently	 on the acceptance of his offer	 the appellant paid another SUM of Rs. 19	649 (omitting annas)	 being 15% of the estimated price. Thus	 in all	 a sum of Rs. 32	748/ being 25% of the estimated total price of the land	 was paid by the assessee to the Society. All this area which the Society had undertaken to develop and sell to different purchasers in small plots	 was in occupation of the Government	 which had requisitioned it for purposes connected with the prosecution of the Second World War. Hence	 one of the terms of the transaction between the assesee and the Society	 was that the transaction of purchase would be completed within six months of the lands being released from Government occupation. It was further stipulated that the assessee would be entitled to apply	 within three months of the receipt of the notice of de requisition	 for extension of time not exceeding one year	 for the completion of the transaction on the condition that he paid interest at the rate of 7% per annum on the outstanding amount	 during the extended period. If the assessee	 as purchaser	 paid to the Society another sum which	 together with Rs. 32	748/ 	 already paid	 would amount to 50% of the total price of the plot in question (within six months of the notice of de requisition)	 he could get a conveyance of the property on his executing an English Mortgage for the remaining 50% of the price carrying interest at the rate of 7%	 on the expiry of these aforesaid six months. As there was an apprehension that the Government might acquire the whole property for its own purpose	 it was further stipulated that in the event of such an acquisition by Government	 the agreement for sale would stand rescinded	 and the assessee	 in that event	 would be entitled to re payment of the amounts paid by him to the Society by way of advance for the completion of the transaction. The assessee 's case is that as the terms of the payment of purchase price in several instalments	 as aforesaid	 were convenient to him	 107 850 he agreed to take the plot on the conditions aforesaid	 with a view to building a residential house for himself and constructing a workshop in connection with his business activity. At the end of the Second World War	 the assesee 's construction activities began to decline	 and there was no immediate prospect of the land in question being de requisitioned by Government. In those circumstances	 the assessee negotiated for the assignment of his rights under the agreement with the Society	 to Rani Yuddha Rajya Devi of Nepal. The Rani appeared to have taken a fancy to the plot and to have made an attractive offer to the appellant. Hence	 after exchange of letters between the parties	 it was agreed between them that a sum of Rs. 1	07	000 odd would be deposited by the Rani with the assessee on suspense account until the transaction of sale between the Society as the vendor and the Rani or her nominee	 as the vendee	 would be executed and the transaction of purchase finalised upon her undertaking to pay the sum of Rs. 98	000 odd to the Society	 which was the outstanding amount of the sale price in respect of the plot agreed by the assessee to be purchased by him from the Society. After a good deal of correspondence	 on December 27	 1950	 the Society executed a deed of conveyance in respect of the said plot	 to the daughter of the said Rani as the vendee. The aforesaid vendee executed a deed of mortgage in favour of the Society for the outstanding amount of Rs. 50	900/ 	 after payment of Rs. 32	700 odd to the Society. In the result	 the assessee received	 on April 3	 1947	 a sum of Rs. 1	07	000 odd from the Rani	 in pursuance of the agreement between her and the assessee. Until the execution of the sale deed between the Society and the Rani 's nominee	 as aforesaid	 the assessee continued to be liable to the Society in respect of the agreement of January 10	 1946. The assessee	 thus	 received from the Rani a sum of Rs. 74	000 odd in excess of the amount paid by him to the Society. The property	 including the plot in question	 was not de requisitioned until some time in 1949. In respect of the assessment year 1948 49	 the assessee filed a return of his income to the Income tax 851 Department	 showing a loss of Rs. 2	000 odd for the financial year 1947 48. In pursuance of the notice under section 23(2) of the Income tax Act	 the assessee appeared before the Income tax Officer	 Calcutta	 and produced all his books of account	 including his bank accounts. The Income tax Officer	 on an examination of the accounts	 and after questioning the assessee	 came to the conclusion that the assessee had made a profit of Rs. 74	000 odd from the transaction in question	 which	 according to him	 was an adventure in the nature of trade. Hence	 on an examination of the assessee 's accounts	 the Income tax Officer included the sum of Rs. 74	485/ as profit from an " adventure in the nature of trade " taxable under section 10 of the Income tax Act as one of the items of income accrued to the assessee during the assessment year 1948 49. The assessee went up in appeal to the Appellate Assistant Commissioner of Income tax	 and challenged the conclusion of the Income tax Officer that the sum of Rs. 74	000 odd was profit from an adventure in the nature of trade. It was also taken as one of the grounds of appeal by him that in any event	 the receipt accrued to the assessee only in 1950	 after the transaction of sale had been completed as between the Rani 's nominee and the Society. The Appellate Assistant Commissioner did not agree with the Income tax Officer that the assessee was not in a position either to complete the transaction of purchase by paying the full amount of consideration	 or to erect a building thereon	 or to use the land in any other way. He pointed out that under the Scheme	 the Society had offered terms of purchase on instalments and on execution of a mortgage in respect of the vended property to the extent of 50% of the consideration money. He also pointed out that the assessee bad considerable investments to the extent of Rs. 2	45	000/ in shares of different limited concerns. He	 therefore	 came to the conclusion that the assessee was a man of means	 and that it could not be said that he had not intended to purchase the plot for his own use. He further hold that the motive of making a profit at the time of the purchase	 had not been established by the Department	 852 and that it was a " solitary transaction ". On these findings	 he found himself unable to confirm the finding of the Income tax Officer that the profit was from an adventure in the nature of trade. He took the view that the appellant had made an investment which had appreciated considerably in value	 and that it was undoubtedly a case of appreciation of capital. Treating it as a " Capital Gain "	 he came to the conclusion that as the payment bad been made in 1947	 the gain accrued in that year and not in the year 1950	 as contended on behalf of the assessee. In the result	 he made him liable to pay Capital Gains tax. The Department went up in appeal to the Incometax Appellate Tribunal	 which	 by its judgment dated March 26	 1954	 allowed the appeal. The Tribunal pointed out that the assessee was not a man of such large means as to think of acquiring the plot for his own residential or business purposes. The admitted shares worth Rs. 2	45	000/ standing in his name	 the Tribunal pointed out	 were held by the assessee	 in respect of the major portion	 on behalf of other members of his family. The Tribunal also observed that Rs. 32	748/ paid by the assessee to the Society had been paid out of borrowed money. This conclusion does not appear to have been well founded in fact. The accounts do show credits in favour of the assessee of a larger amount. The Tribunal also pointed out that undoubtedly the " assessee is a keen businessman and has a number of varied business interests. Admittedly	 he is a director of about a dozen concerns and managing director of two or three. Her is /8/ annas partner in an Engineering concern which is carrying out a number of construction and other contract works. He is an Engineer by profession and a resident of Calcutta. " The Tribunal based its conclusion that the sale was an adventure in the nature of trade	 and that the profits	 thus made	 were assessable to income tax	 on the following grounds: That the payment by the assessee to the Co. operative Society	 of Rs. 32	748/ 	 came out of a loan taken for the purpose from a company (which conclu. sion	 as already pointed out	 is not borne out by the entries in the books of account of that company); 853 2. That the assessee could not have paid the balance of Rs. 98	000 odd	 the outstanding amount of the purchase money	 to the Insurance Company ; 3. That the assessee had no means to construct a house on the land	 and lastly	 4. That the site itself fetched no income	 thus	 showing that it could not be an investment but only an excursion into the realm of trade. Against this decision of the Appellate Tribunal	 the assessee moved this Court and obtained special leave to appeal. Before we deal with the main question in controversy in this appeal	 we would like to make some general remarks on the nature of the questions involved in this case. It is not disputed on behalf of the respondent that the question now before us	 is a question of law	 or a mixed question of fact and law	 as has been recently laid down by this Court in the case of G. Venkataswami Naidu and Co. vs The Commissioner of Income tax (1). Speaking for the Court	 Gajendragadkar	 J.	 after a detailed discussion of the decisions of this Court Meenakshi Mills	 Madurai vs Commis. sioner of Income tax	 Madras (2) and The Oriental Investment Co.		 Ltd. vs Commissioner of Income tax	 Bombay (3)	 and of the House of Lords	 in Edwards vs Bairstow (4)	 came to the conclusion that the question arising in the case	 is a mixed question of law and fact	 and	 therefore	 open to examination by this Court. In G. Venkataswami Naidu and Co. vs The Commissioner of Income tax (supra)	 the question raised	 was exactly similar to the question now before us	 though in a different setting of facts. His conclusion may be stated in his own words as follows: " In other words	 in reaching the conclusion that the transaction is an adventure in the nature of trade	 the tribunal has to find primary evidentiary facts and then apply the legal principles involved in the expression " adventure in the nature of trade " used by section 2	 sub section It is patent that the clause 'in the nature of trade ' postulates the existence of certain elements in (1) ; (2) ; (3) ; (4) ; 854 the adventure which in law would invest it with the character of a trade or business;. and that would make the question and its decision one of mixed law and fact." "In that view of the matter	 this Court further pointed out that the more proper form of the question is " whether	 on the facts and circumstances proved in the case	 the inference that the transaction in question is an adventure in the nature of trade is in law justified. " The recent decision of this Court has examined almost all the relevant cases decided in Indian as also English and Scotch Courts	 and thus	 our task in the present case	 has been very much simplified. It has further been observed in that case	 more than once	 that judicial opinion was unanimous that no general principles or universal tests could be laid down	 which could govern the decision of all cases in which the question for determination is similar to the one now before us. Each case must be determined on the total impression created on the mind of the Court by all the facts and circumstances disclosed in that particular case. Hence	 no decided case can	 strictly speaking	 be a precedent which could govern the decision of a later case	 involving a similar question. Those decisions can be used only by way of illustrations of the different view points which have a bearing on the decision of the case in hand. It has also not been disputed that in a case where a transaction under examination	 is not in the line of the business of the assessee	 and is ail isolated or a single instance of a transaction like that	 the burden lies on the Revenue to bring the case within the words of the statute	 .namely	 that it was an adventure in the nature of trade. That the onus is on the Department	 has been clearly laid down by Lord Garmount in the case of Commissioners of Inland Revenue vs Reinhold (1). That was a case in which the respondent	 the assessee	 was a director of a company carrying on the business of WarehousemeD	 and had bought four houses in January	 1945	 and sold them at a profit in December	 1947. He admitted that he had bought the property with a (1) 	 393. 855 view to resale	 and had instructed his agents to sell the same whenever a suitable purchaser was forthcoming. The assessee was made liable for tax in respect of the profit made by him on the resale. On an appeal by the assessee before the General Commis 7 sioners	 it was contended on his behalf that the profit on the resale was not taxable. On behalf of the Crown	 it was contended that the transaction of purchase and sale in question	 constituted an adventure in the nature of trade	 and that	 therefore	 the profits arising out of the transaction	 were chargeable to income tax. The General Commissioners	 being eqally divided	 allowed the appeal. It was held by the Court of Session (First Division) that the fact that the property was purchased with a view to resale	 did not	 of itself	 establish that the transaction was an adventure in the nature of trade	 and that	 therefore	 the determination by the Commissioners was justifiable in law. The Court	 in coming to that conclusion	 took into account the con siderations that the respondent was not a property agent	 and that his business was not	 in any way	 associated with the purchase and sale of estates. It was an isolated transaction	 even though the assessee had purchased a hotel and sold it again ten years previously. The Court made a reference to the following observations of Lord Buckmaster in the case of Leeming vs Jones (1): ". . an accretion to capital does not become income merely because the original capital was invested in the hope and expectation that it would rise in value; if it does so rise	 its realization does not make it income. " Placing that decision along side of the present case	 let us see what its salient features are. Though the appellant is engaged in various types of business as a share holder or a director in limited liability concerns	 as also in building contracts	 dealing in landed estates is not in the line of his business. If such a transaction were in the line of his business	 it would not matter much whether	 in the assessment year	 he had several such transactions or only one. Even a single (1) 	 420. 856 transaction of dealing in landed estates	 being a part of his business	 would be liable to income tax	 if a profit is made in that transaction. But.	 admittedly	 the transaction in question is the only one of its kind	 	rout of which the appellant has made a considerable profit which appears to have been in the nature of a windfall. When he entered into the agreement with the Society for the purchase of the plot	 in January	 1946	 he had expected that at the end of the World War	 the Government would release the property from its requisition	 and that the Society will develop the land by laying the necessary roads and providing other amenities to the plot holders. But as the Government did not release the property	 and as the appellant was a businessman	 who was interested in return from his capital	 and as he had already paid Rs. 32	000 odd by way of advance towards the purchase price	 and as in 1947	 at the end of the Second World War	 his business in contracts for building con structions	 began to decline	 he	 naturally	 thought of making the best of the bargain. If he did not get out of the transaction	 his financial difficulties in meeting his further liabilities under the agreement	 as a result of slump in his main line of business	 might lead to the forfeiture of the advance of Rs. 32	000 odd	 he would naturally be on the lookout for a good purchaser. He was lucky to find a lady with a lot of money to spare	 who had	 as he alleged	 taken a fancy to the plot in question. Thus	 he could assign to her the benefit of his agreement with the Society on terms which were highly profitable to him. There is no clear evidence in support of the inference of the Appellate Tribunal that the land was purchased with the sole intention of selling it later at a profit. The Tribunal considered two alternatives in relation to this transaction one	 that the land was purchased in order to build a residential house	 and the second	 that it was purchased in hope of selling it later for a profit. The first alterna tive	 the Tribunal rejected on the ground that " be does not seem to have very much of means at his disposal. " That itself is a statement which does not bear close scrutiny. During the two years previous to the year under assessment	 the appellant had 857 been assessed to income tax on Rs. 53	000/ and Rs. 59	000/ 	 as already indicated. That does not lend countenance to the surmise that the appellant was not a man of means. Admittedly	 he held marketable shares of the value of about 2 1/2 lacs of rupees	 though all those shares standing in his name	 were not claimed by him as his omn. Apparently	 he was carrying on a lucrative business during the immediately preceding years. It is true that in the year of assessment	 on his own showing in his income tax return	 he had suffered a loss	 but that may have been a turning point in his fortunes	 and that would not necessarily lead to the inference that he was not in a sound financial position on the date of the agreement with the Society. It may be that his hopes of flourishing in his business in the years to come	 were not realized after the conclusion of the Second World War. But even assuming that the Tribunal was right in its conclusion as to the second alternative	 namely	 that the purchase was made in the hope of making a profit after re sale	 the matter is not concluded. In this connection	 a reference may be made again to the decision in Commissioners of Inland Revenue vs Reinhold (supra)	 at p. 392	 where it was argued on behalf of the Revenue that a profit made in a transaction which was in the nature of an investment in the hope and expectation of a rise in price	 may be an accretion of capital	 but that if at the time of the purchase	 the purchaser had resolved to sell the property in the event of a profit being made	 and instructions had been issued to his agents accordingly	 the transaction could not have been treated as an investment	 but was truly an adventure in the nature of trade	 and the profit thus made	 must be treated as income. This argument was not accepted as valid. In that connection	 reference was made to the following observations of Lord Dunedin	 in the case of Jones vs Leeming (1) : ". . The fact that a man does not mean to hold an investment may be an item of evidence tending to show whether he is carrying on a trade or (1) 	 P. 423. 108 858 concern in the nature of trade in respect of his invest ments	 but per se it leads to no conclusion whatever. " The decision of the House of Lords in the case afore. said	 which is also reported in 	 is rather ins. tructive. In that case	 the appellant was a member of a syndicate of four persons	 formed to acquire an option over a rubber estate	 with a view to selling at a profit. The option was secured	 but the estate was considered to be too small for re sale. An option over another joint estate was accordingly secured	 and it was decided to resell the two estates to a public company to be formed for the purpose. Another member of the syndicate undertook to arrange for promotion of the company. The syndicate 's rights were transferred to a company. This company floated another company to which the properties were sold. The syndicate 's profits were divided between the members	 and the appellant	 as one of the members of the syndicate	 was assessed to income tax in respect of his shares of the profits. The General Commissioners	 on appeal	 were of the opinion that the interest in the property in question had been acquired with the sole object of making a profit	 and that there was no intention of holding it as an investment. Hence	 the assessment to income tax was affirmed. The King 's Bench Division	 at the first hearing	 remitted the case to the General Commissioners for a finding as to whether there was a concern in the nature of trade	 and the Commissioners found that the transaction was not such a concern. It was held by the House of Lords that the profits were not liable to tax on the basis that they were income from an adventure in the nature of trade. Viscount Dunedin	 in the course of his opinion	 referred	 with apparent approval	 to the dictum in Ryall vs Noare (1)	 to the following effect: " A casual profit made on an isolated purchase and sale	 unless merged with similar transactions in the carrying on of a trade or business is not liable to tax." He also approved of the following dictum of Lawrence	 L. J.	 in the case of Leeming vs Jones (2) :_ (1) 	 454. (2) 	 302	 859 " It seems to me in the case of an isolated transaction of purchase and re sale of property there is really no middle course open. It is either an adventure in the nature of trade	 or else it is simply a case of sale and re sale of property." Lord Warrington of Clyffe	 in the course of his opinion in the case of Jones vs Leeming (1)	 made the following observations	 which apply with full force to the facts and circumstances of the present case: ' " Here we have a case of the acquisition of an item of property and a profit made by the transfer thereof to another. In this I can find nothing but a profit arising from an accretion in value of the item of property in question and the realization of such enhanced value. There is in this nothing in the nature of revenue or income. The fact that the parties intended from the first to make a profit if they could does not in my opinion affect the question we have to determine." As already indicated	 the line of demarcation between cases of isolated transactions of purchase and sale being ventures in the nature of trade	 and those which are not such ventures	 if any	 is very thin. The cases in which single transactions have been held not to belong to the class of ventures in the nature of trade	 have been noticed above	 and the considerations which led those courts to hold that such ventures were not liable to income tax	 apply to the case in hand. On the other side of the line	 there is a series of cases in which single transactions have been held to have been ventures in the nature of trade	 for reasons which do not apply to the present case. We may notice some of the typical cases which illustrate the reasons for which a single transaction was brought within the ambit of a venture in the nature of trade. The case of Californian Copper Syndicate (Limited and Reduced) vs Harris (Surveyor of Taxes) (2)	 related to the purchase and sale of a mining property. In that case	 a company had been formed for the purpose	 inter alia	 of acquiring and re selling a mining property. That company acquired some mining property (1) 	 425. (2) 860 and sold the same to a second company	 consideration for the sale being paid up shares of the latter company. It was held by the Court of Exbhequer (Scotland) Second Division	 that the difference between the purchase price and the value of shares for which the property was exchanged was a profit assessable to incometax. It was pointed out by the Court that the case involved a deal which was a "proper trading transaction	 one within the Company 's power under their Articles	 and contemplated as well as authorised by their Articles ". The ratio of the decision in that case appears to have been that though it was a single transaction in which profit was made	 it was an adventure in the nature of trade	 being in the line of the business adopted by the company. The next case of Martin vs Lowry (1) is another instance of a single transaction of purchase of property being treated as a venture in the nature of trade	 on account of the very nature and magnitude of the commodity dealt in by a person whose usual line of business was wholly outside the scope of the new venture. That was a case in which a wholesale agricultural machinery merchant	 who never had any dealings in linen trade	 purchased from the Government its surplus stock of aeroplane linen (some 44 million yards). In order to dispose of this huge stock of linen purchased by him	 the assessee embarked upon an extensive advertising campaign	 rented offices and engaged expert staff to organize the sales. The number of transactions of sale of that huge stock of linen	 ran into thousands. The House of Lords affirmed the determination of the courts below	 holding that the transaction amounted to the carrying on of a trade of which the profits were chargeable to income tax and Excess Profits Duty. Another case in the same volume	 is The Commissioners of Inland Revenue vs Livingston and others (2). In that case	 the persons sought to be taxed were	 a ship repairer	 a blacksmith and a fish salesman 's employee	 who joined in the venture of purchasing a cargo vessel with a view to converting it into a steam drifter	 and selling it. That was a new line of business for them. (1) (2) 861 Extensive repairs and alterations to the ship were carried out	 and the result was a sale of the converted vessel at a profit. It was held that the transaction	 though an isolated one	 was a venture in the nature of trade	 and thus	 liable to income tax. The ratio of the decision was stated in the following words of the Lord President: " If the venture was one consisting simply in an isolated purchase of some article against an expected rise in price and a subsequent sale it might be impossible to say that the venture was 'in the nature of trade ' ; because the only trade in the nature of which it could participate would be the trade of a dealer in such articles	 and a single transaction falls as far short of constituting a dealer 's trade	 as the appearance of a single swallow does. of making a summer. The trade of a dealer necessarily consists of a course of dealing	 either actually engaged in or at any rate contemplated and intended to continue. " The case of Rutledge vs The Commissioners of Inland Revenue (1)	 is another illustration of a case in which a single transaction of purchase and sale	 was held to be an adventure in the nature of trade for the reason that the commodity purchased was of such a nature and of such a vast magnitude that it could not have possibly been intended for the consumption of the purchaser himself or his family. In that case	 the assessee was a money lender who was also interested in a cinema company. In the interest of his cinema business	 he happened to be in Berlin	 and there took the opportunity of purchasing	 for a very cheap price	 a very large quantity (one million rolls) of toilet paperfor pound 1	000 and realised pound 	12	000 by sale of that com modity. He was taxed on the nett profit of pound 10	895. It was held by the Court of Session	 Scotland (First Division)	 that it was certainly an adventure	 because the assessee made himself liable for the purchase of that vast quantity of toilet paper	 obviously for no other conceivable purpose than that of re selling it for a large profit. As regards the question whether the adventure was in the nature of trade	 it was contended (1) 862 on behalf of the assessee that it was essential to the idea of trade that there should be a continuous series of trading operations. The Court rightly pointed out that the question was not whether it was a trade but ` Whether it was a venture in the nature of trade. Hence	 though the single transaction of purchase and sale	 may not have amounted to what is ordinarily understood by trade in the sense of a series of transactions	 it was certainly a venture in the nature of trade	 because from the very beginning	 the intention was manifest that the purchase was made not with a view to utilizing the commodity for the personal use of the purchaser	 but with a view to making profit by a resale	 which was apparent from the very nature and magnitude of the commodity purchased. Another illustration of the same rule is to be found in the case of The Balgownie Land Trust	 Ltd. vs The Commissioners of Inland Revenue (1). That was the case of a landed estate which was left by the owner to. trustees with a direction to sell it. The trustees	 being unsuccessful in their efforts to sell the estate	 formed a company with general powers to deal in real property	 and transferred the estate to this company. The company made certain other purchases of property by way of accretions to the original estate. The property was sold in parts during the years 1921	 1924	 1926 and 1927. The company was assessed to income tax for the profits from the sales of those lands. The Court	 confirming the assessment of the company to income tax on the profits made on those sales	 held that the company was doing precisely what it meant to do	 namely	 carrying on business of a company dealing in a real estate. The case of Commissioners of Inland Revenue vs Fraser (2)	 is another illustration of the rule that if a person enters into a single transaction outside his ordinary avocation of life	 with the sole object of making a profit by re sale	 it may amount to an adventure in the nature of trade. In that case	 a wood cutter bought	 for re sale	 whisky in large quantities	 and without taking delivery of the whisky	 sold it at a profit. It was the assessee 's sole (1) (2) 863 dealing in whisky	 but all the same	 it was held to be liable to income tax on the ground that the nature of the transaction	 with reference to the commodity dealt in in large quantities	 which would not ordinarily be meant for personal or family consumption	 may indicate that it was an adventure in the nature of trade. We have set out the illustrative cases on the two sides of the thin line of demarcation that may possibly be said to distinguish one class of case from the other. The question still remains	 on which side of the line	 the present case should be placed ? The learned Solicitor General placed strong reliance on the recent decision of this Court in G. Venkataswami Naidu & Co. vs The Commissioner of Income tax (supra). The question	 therefore	 is whether the present case falls on the same side of the line as the recent decision of this Court	 which had to deal with a similar question	 as already indicated. In that case	 the assessee had purchased four plots under four different deeds. During the time that the assessee was in possession of those plots	 he made no efforts to put up any structures	 or to utilize them in other ways. The assessee was in a fiduciary position with the Mills contiguous to which the plots purchased	 were; and it was also found that the assessee was in a position to influence the Mills to purchase those plots at a price favourable to him. It was in that setting of the facts	 that this Court made the following obser vations "When section 2	 sub section (4) refers to an adventure in the nature of trade it clearly suggests that the transaction cannot properly be regarded as trade or busi. It is allied to transactions that constitute trade or business but may not be trade or business itself It is characterized by some pB`= of the essential features that makeup trade or business but not by all of them; and so	 even an isolated transaction can satisfy the description of an adventure in the nature of trade. " Can it be said	 in the setting of the facts and circumstances of the present case	 set out above	 that the transaction in question has such characteristics as 864 to point to the conclusion that itwas a venture in the nature of trade ? It was suggested that the area of the land in question	 namely	 three quarters of an acre in the suburbs of Calcutta	 was large enough to indicate that the assessee would not have intended to take it for his own use and occupation. In the first place	 the area is not so large as to lead necessarily to the inference that it could not have been meant to be used by him in the way of his business or for his own residence. Certainly	 the Society	 having acquired more than 500 bighas of land in a lot	 could not claim that the land was meant for its own use. On the other side	 it was meant to be developed into small building sites	 as they actually did. But the Society had	 without developing the area	 sub divided it into building sites	 one of which was sought to be acquired by the appellant. He was carrying on an engineering concern	 and it is not	 therefore	 unlikely that he may have intended	 as he alleged	 to put up a small workshop on a portion of the land to be acquired	 and to build his own residential house on the other portion. It was not suggested that the appellant had his own house in Calcutta	 and was	 therefore	 not in need of a building site. At the time he entered into the agreement of purchase with the Society	 he was doing good business	 as is shown by the large amounts on which he was assessed to income tax. It was not unnatural for him to look forward to continue his business in as prosperous a way as he had been doing in the recent past	 and thus	 to raise sufficient funds to build his own residential house	 or to construct a workshop for his own engineering business. Hence	 the possibility or the probability that the site may appreciate in value	 would not necessarily lend itself to the inference that the transaction was a venture in the nature of trade	 as distinguished from a capital investment. In all the circumstances of this case	 the total impression created on our mind	 is that it has not been made out by the Department that the dominant intention of the appellant was to embark on a venture in the nature of trade	 when he entered into the agreement which resulted in the profits sought to be taxed. 865 For the aforesaid reasons	 we would allow this appeal	 and set aside the orders of the Tribunal below with costs. KAPUR	 J. I regret I am unable to agree. that the appeal in the present case should be allowed and my reasons are these: On the facts which were proved the Income tax Appellate Tribunal came to the conclusion that the purchase of land by the appellant was an adventure in the nature of trade and profit arising therefrom was assessable to income tax. In coming to this conclusion the Appellate Tribunal took into consideration certain facts; (1) that the only payment the appellant made for the purchase of the land was of a sum of Rs. 32	748 which he borrowed from his company and he was not in a position to pay the balance of Rs. 98	246; (2) the appellant had no money available at all	 to pay the part of the purchase price of Rs. 1	30	994 and be had no means to construct the house ; (3) that his financial resources were such as not to justify the purchase of the plot of land for the construction of a house; (4) the site itself fetched no income but it was a kind of investment with the hope of making a profit out of it and the land was purchased only for the purpose of sale; (5) that the appellant being a keen businessman had intimate knowledge of the trend of the rise in prices of land and therefore the purpose for which he made the purchase was in order to make profit and not merely an investment. As against these circumstances various facts were brought to our notice which it has argued militate against the findings of the Tribunal : (1) that the appellant was carrying on an engineering concern and therefore it was not unlikely that he intended	 as he alleged	 to put up a small workshop on that portion of land; (2) that the appellant did not have his own house in Calcutta and therefore he could have been in need of a piece of land on which he could build a house and (3) that at the time he entered into an agreement of purchase he had a prosperous business which is 	shown by the amount of income tax which he paid for 109 866 two years and he could legitimately expect that his business would continue to remain prosperous; (4) that these facts could not lead to the necessary consequence that the transaction was a venture in the nature of trade and that it was not the dominant intention of the appellant at the time when he entered into the transaction to embark upon a venture in the nature of trade. Under the Income tax law it is the exclusive function of the Appellate Tribunal to find facts. Even though the powers of this Court under article 136 are very wide yet they have to be exercised within the limits imposed by the decisions of this Court and one such limitation is that this Court will not ordinarily interfere with findings of fact. It has been held by this Court that the question whether an adventure is in the nature of a trade or not is a mixed question of law and fact. The facts have to be found by the fact finding authority and to those facts the law has to be applied and whenever it is necessary to get a correct finding on a question of fact it is the fact finding authority which is called upon to consider the evidence and give its finding. (See G. Venkataswami Naidu & Co. vs The Commissioner of Income tax (1)). Therefore if there arose a question of law out of the order of the Appellate Tribunal then the appellant could have had the case stated to the High Court under section 66(1) and if the Appellate Tribunal refused to state the case it was open to the appellant to have the case stated under section 66(2) of the Indian Income tax Act. No doubt he did make an application to the Appellate Tribunal to state the case under section 66(1) but he did not make any application to the High Court till 1957	 after he had obtained special leave in this Court and the High Court dismissed the petition on the ground that it was barred by time. The position comes to this that the tribunal refused to state the case under section 66(1) of the Income tax Act and the appellant did not apply to the High Court under section 66(2) till long after the period of limitation had expired. In the circumstances the courses open to this (1) ; 867 Court would be (1) to set aside the order of the Appellate Tribunal and remit the case to the Tribunal for decision in accordance with the observations made by this Court as was done in the case of Omar Saly Mohammed Sait vs The Commissioner of Income tax (1) or it may be open to this Court to direct a reference as was done in Jagta Coal Company vs The Commissioner of Income tax (2). Then in Dhakeswari Cotton Mills vs The Commissioner of Income tax (3) this Court only remitted the case to the Appellate Tribunal to proceed in accordance with law on the ground that certain principles of natural justice had been violated and the assessee was not given an opportunity to rebut the evidence against him. The Income tax law has prescribed a procedure to have questions of law determined and an assessee cannot byepass the various steps prescribed under that law. The position therefore comes to this that if there is no evidence to support the finding the question is one of law which would fall under sections 66(1) and 66(2) of the Income tax Act; (2) if in giving its finding the Appellate Tribunal disregards certain pieces of evidence or proceeds in a manner which is violative of natural justice the finding will be vitiated but if there is evidence to support the finding of fact and these findings are properly arrived at then it will be a pure question of fact which this Court will not ordinarily interfere with ; (3) if there is an error of law arising as above or because of misinterpretation of the Income tax law then the case has to be stated to the High Court in the manner provided in the Income tax Act and if the assessee does not choose to follow the procedure prescribed then he cannot come to this Court disregarding the remedy provided by the Income tax law and (4) the legal effect of facts found where the point for determination is a mixed question of law and fact would fall under section 66(1) & (2) of the Income tax Act. (See G. Venkataswami Naidu & Co. vs The Commissioner of Income tax (4) ). This is a case in which certain essential facts have (1) C.A. No. 15 Of 1958 (2) C. A. NO. 337 Of 1956. (3) ; (4) ; 868 not been considered by the Appellate Tribunal and therefore it is a case which should be remitted to the Income tax Appellate Tribunal to determine the facts in accordance with the observations made by this 		Court and in the light of those findings to determine whether the transaction was an adventure in the nature of a trade or not. I would order accordingly. ORDER OF THE COURT In view of the opinion of the majority	 the appeal is allowed with costs.

The question for decision in this appeal was whether a single transaction of sale of land measuring about three quarters of an acre was an adventure in the nature of trade so as to make it liable to income tax. The assessee appellant	 an Engineer by profession	 was engaged in various business activities including that of an engineering firm but	 admittedly	 had no dealing	 except the one in question	 in respect of land. In 1946 be entered into an agreement with the Hindusthan Co operative Insurance Society Ltd. for the purchase of the land in question and paid a sum of Rs. 32	748 in two instalments	 being 25% of the estimated total price of the land. As his construction activities declined and the Government	 who had requisitioned the land	 were not immediately releasing it	 the appellant sold his rights under the agreement to a third party in 1947 and thereby received a sum of Rs. 74	000 odd in excess of the amount paid by him to the Society. The land	 however	 was not released by the Government until 1949. The Income tax Officer held that the transaction was an adventure in the nature of trade and the said sum was a profit therefrom	 taxable under section 10 of the Incometax Act	 and included it in the assessable income. The Appellate Assistant Commissioner	 in appeal	 held that the assessee	 a man of means	 had intended to purchase the land for his own use	 and that the motive of profit was entirely absent when the purchase was made and that as it was a case of appreciation of capital	 he was liable to pay Capital Gains tax. The Appellate Tribunal on appeal by the Department	 reversed the findings and the decision of the Appellate Assistant Commissioner and affirmed that of the Income tax Officer. After the assessee had obtained from this Court special leave to appeal	 he made an application to the High Court under section 66(2) of the Income tax Act	 which that Court dismissed as being barred by limitation. Held	 (per Bhagwati and Sinha	 JJ.	 Kapur	 J.	 dissenting) that admittedly the transaction in question being a single instance of its kind	 and not in the line of the business of the assessee	 it was for the Department to prove that the dominant intention of the appellant	 when he entered into the agreement with the Society	 was to embark on a venture in the nature of 847 trade as distinguished from a capital investment	 and they having failed to do so	 the appeal must succeed. Commissioners of Inland Revenue vs Reinhold	 	 applied. There could be no doubt	 as held by the Court	 that the question for decision involved in such cases was one of law or a mixed question of fact and law. G. Venkataswami Naidu and Co. vs The Commissioner of I come tax; 	 	 referred to and distinguished. The line of demarcation	 however	 between an isolated trans action and a venture in the nature of trade was very thin and each case had to be decided on the total impression all its facts and circumstances made on the mind of the judge. Case law reviewed. KAPUR	 J. Even though the powers of this Court under article I36 of the Constitution were very wide	 they had to be exercised within the limits imposed by its own decisions and one such limitation was that this Court would not ordinarily interfere on questions of fact. Since the question involved in the instant case was a mixed question of law and fact	 the facts should properly be found by the body whose exclusive function under the Income tax Act was to do so. G. Venkataswami Naidu & Co. vs The Commissioner of Income tax; 	 and Dhakeswari Cotton Mills vs The Commissioner of Income tax	 [1955] i S.C.R. 94I	 referred to. Nor could an assessee be allowed to by pass the procedure prescribed by sections 66(1)	 66(2) of the Income tax Act to have question of law determined. Since	 however	 the Appellate Tribunal had	 in the instant case	 failed to consider certain essential facts	 the case should be remitted to it for a proper decision in the light of the observations made by this Court.