9911796707
TMI Blog2014 (1) TMI 1693X X X X Extracts X X X X X X X X Extracts X X X X ..... he income arising from transaction of sale of agricultural land to the tune of ₹ 76,16,000/- is not a business income and it is simply receipt arising from sale of agricultural piece of land. Accordingly, we order to delete the impugned addition. In view of the our above finding, the claim of deduction u/s 54F of the Act would be of only of academic interest. This land cannot be treated as a capital asset u/s 2(14) of the Act. This receipt in fact is to be treated as long term capital gains having arisen from sale of land and not as a business income. Trading addition - bogus purchases - Held that:- The books of account of the assessee were rejected and provision of Section 145(3) of the Act was invoked. Thereafter, the AO estimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Turnover Gross profit Gross profit rate 2006-07 1399290 469565 33.56% 2007-08 360814 155983 42.23% 2008-09 1004180 322936 32.15% However, after considering the reply of the assessee, it was noticed that the assessee owned / possessed the following land situated at Tehsil Amer in Distt. Jaipur . Serial No Khasra No. Raqba 1. 81 0.0700 hectares 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. AR has submitted the following points. (a) The auditor who has issued the audit report had represented the case before the AO and stated that nature of business had inadvertently been mentioned as trading of shares and land and that the assessee was doing business of only precious and semi precious stones. (b) The AO has observed this was a single transaction of land during the year. Just because it was for more than ₹ 50 lacs it is not a good basis to form the premises the nature of transaction was business. The fact that the land was sold to mustard seed Ghaloti Hotels P. Ltd. is not a reflection on the assessee for determining that she was engaged in the business of trade of land. Had it been so all the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below and has pooh-poohed the above points by explaining each one by one and has reiterated the conclusion drawn by the ld. CIT(A). 2.6 After considering the above submissions vis-a-vis the evidence available on record, we are convinced that the assessee has treated this land as her asset and not stock in trade. When the entire evidence are examined in their entirety, the only one irresistible conclusion can be drawn that the assessee owned and possessed a piece of agricultural land as her asset acquired for investment and it was sold as an agricultural land. The above points mentioned as (a) to (g) have been duly examined by us and we are of the considered opinion that not only these contentions are correct and their effec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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