TMI Blog2021 (8) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. - ITA No.6597/Mum/2019 - - - Dated:- 2-8-2021 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER And SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER Assessee by : Shri Dilip Kumar Revenue by : Shri Gurbinder Singh ORDER PER SHRI SHAMIM YAHYA AM This appeal by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come has been computed on the said area sold of 11,908 sq. meters by the said C.I.T.(A). 2. The appellant craves leave to add, amend, alter, modify, delete and / or change all or any of the above grounds on or before the date of hearing. 3. At the outset, the ld. Counsel of the assessee submitted that he shall be pressing only ground No.1.4. The ld. Counsel further submitted that there are some mistakes in the above said ground No.1.4 which have been amended to read as under:- 1.4 Without prejudice to above, the said C.I.T. (A) erred in ignoring the fact that notional sale value should be ₹ 1,41,45,938/- (2,28,16,028 x 62 / 100) being the land value of 62% of the stock-in-trade sold during the year and not on entire la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /07/2012. The ld. AO further noted that the ld. AR vide order sheet noting dated 01/03/2016 has agreed to adopt the valuation for the purpose of computing long term capital gains. As regards to the computation of long term gain on the conversion of agricultural land into stock in trade, it was pointed out by the assessee that as per Collector s order, 44314 sq.mtrs of the land was converted into Non-agricultural land. That out of this, 9447.07 sq.mtrs was to be used as roads-drainage plus 2817.70 sq.mts was to be used as common place i.e. loading and unloading area that will be considered as External Amenities at ₹ 61.937 Lakhs. The ld. AO noted that while computing long term capital gain, assessee has taken only proportionate cost fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, it will go on to increase the value of stock-in-trade and hence, when the plots are sold, the resultant profit will be smaller. That rate of taxation on long term capital gain is much lower than the tax of normal profits. In this view of the matter, the query were raised to the ld. Departmental representative as to what prejudice does the assessee s claim cause to the Revenue. The ld. DR could not offer any cogent explanation. In our considered opinion, 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 res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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