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TMI Blog2018 (11) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... ame. The sale value of the land will fluctuate from one plot to another due to various reasons. Therefore the earlier sale value of the land cannot be taken as a decisive factor to estimate the value of land that remains to be sold viz., the closing stock of land. Further when the development cost is also added to the earlier sale price of the land then the value of land becomes inflated. According to prudent accounting principles which is generally accepted is to value the closing stock at cost or market price whichever is less. In this situation, in the case of the assessee, it would be appropriate to value the closing stock of land based on the market value determined by the State Government Authorities in the Revenue records. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 015 wherein the Ld.AO made addition of ₹ 53,03,690/- towards the value of closing stock and ₹ 8,61,570/- being the sale value not disclosed in the return of income. 4. The lone issue before us for consideration is whether the value of closing stock of land determined by the Ld.AO at ₹ 53,03,690/-, which was not disclosed by the assessee in her return of income by stating that the plots of land situated at CRM Semmozhi Nagar extending to 19,793 sq.ft., and Santosh Avenue extending to 35,421 sq.ft., does not have any realizable value is appropriate. The Ld.Revenue Authorities were of the view that the value of closing stock of land cannot be treated as nil and thereafter worked out the value of the land at ₹ 345 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had incurred expenditure towards development of the land, definitely it is only with a view for bringing the land to marketable conditions. However we find that the Ld.Revenue Authorities had estimated the value of the land at ₹ 345 per sq.ft., being the sale price of the land sold in the earlier instance and also included the development cost of ₹ 153.41 per sq.ft.,. We do not find any merit in the same. The sale value of the land will fluctuate from one plot to another due to various reasons. Therefore the earlier sale value of the land cannot be taken as a decisive factor to estimate the value of land that remains to be sold viz., the closing stock of land. Further when the development cost is also added to the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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