The assessee-company, whose business included dealing in real estate, had booked two office premises on 31.03.1982. Without ever taking possession, it sold the premises on 03.08.1988 and claimed the resulting surplus as long-term capital gains, contending the properties were an investment. Upholding the Tribunal’s decision, the High Court held that the transaction was an adventure in the nature of trade. The Court reasoned that the assessee’s intention must be judged based on the cumulative effect of all facts, which in this case pointed towards a motive of resale for profit. The key factors were that the assessee’s main business was real estate, it sold the properties before taking possession, it had locked up its entire share capital in the purchase, and it failed to provide evidence for its claim that the sale was forced by external circumstances. Therefore, the properties were correctly treated as stock-in-trade, and the surplus was assessable as business income. (AY. 1989-90)