KHAN BAHADUR AHMED ALLADIN & SONS vs COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH

The Supreme Court held that the transaction involving the purchase and subsequent sale of a Brengun factory constituted an 'adventure in the nature of trade' under Section 2(4) of the Indian Income-tax Act, 1922. The Court emphasized that the determination of such a transaction is a mixed question of law and fact, requiring consideration of all relevant circumstances. The appeal was dismissed, affirming the lower courts' findings that the firm acted with the intent to profit rather than to make a permanent investment.