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2014 (12) TMI 66 - HC - Income TaxSale/transfer of agricultural land capital asset or not u/s 2(14)(iii) – Held that:- When the assessee in the conveyance deed himself has recited about the land having been converted u/s 90A of the Act, the nature of the land never remained agricultural any more - even the order passed under the Land Revenue Act has also been indicated in the sale deed - the assessee himself has stated that the seller became an absolute owner of the residential land having converted from agricultural to residential use of the land - no documentary evidence was led by the assessee herein to substantiate his claim of doing any agricultural operations therein as the AO in the assessment order has clearly and repeatedly asked the assessee to substantiate the claim about the exact agricultural operations having been carried on by the assessee, but no satisfactory material was placed by the assessee - the other lands, though not converted from agricultural to non-agricultural use, were in the same/near vicinity of the lands which were converted from agricultural to non-agricultural and thus the nature of the said lands too could not be different – relying upon Sarifabibi Mohammed Ibrahim & others Vs. CIT [1993 (9) TMI 10 - SUPREME Court] it has been rightly held that the lands, sold/transferred by the assesse to the private limited companies, were non-agricultural and outside the scope and meaning of Sec. 2(14)(iii) of the IT Act requires no consideration. – thus, no substantial question of law arises for consideration – decided against revenue. Rejection of books of accounts u/s 145(3) – Higher GP applied and trading accounts rejected – Held that:- Provisions of Sec. 145(3) are applicable and what should be a reasonable profit on account of the trading transactions, is a finding of fact - The assessee has introduced and recorded bogus purchases and verification of opening stock/closing stock were not open for verification in the books of accounts, thus the motive was to reduce its profits and thus the assessee/appellant has not been able to dispel this finding of fact recorded by all the three authorities who in consonance, have come to the conclusion - on non-genuine purchases, books of accounts can be rejected and provisions of Sec. 145(3) are applicable – as such no substantial question of law arises for consideration – Decided against assessee.
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