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2021 (8) TMI 82 - AT - Income TaxAssessment of Long Term Capital Gain U/sec 45(2) - conversion of land as stock-in-trade - sale of land after plotting - HELD THAT:- the assessee is making a claim to value the stock-in-trade only on the value of saleable plots which are stock-in-trade. The assessee’s claim to compute long term capital gain with reference to saleable plot is revenue neutral in as much as on the sale of plots as business income the resultant income would be much higher and would be taxed at a higher rate. Moreover the road and peripheral development in isolation have no market value. In our considered opinion, this claim of the assessee would be revenue neutral. As held by the Hon’ble Supreme Court in the case of Excel Industries Ltd.[2013 (10) TMI 324 - SUPREME COURT] when on an issue the tax effect is neutral, the same should not be agitated. In this view of the matter, in our considered opinion, this claim of the assessee by way of the ground raised above is allowable and accordingly, we allow the same. This is more so when assessee is not pressing the other grounds relating to cost of improvement, etc.
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