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TMI Blog2022 (2) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... na Das and Mr. Siddharth Das. There is a delay of 874 days in filing this appeal. We have perused the affidavit filed in support of the petition and we find there is absolutely no reason given for the inordinate delay in filing the appeal. However, considering the facts that identical issues were considered in the assessee's own case for the subsequent assessment year 2008-2009 along with other connected matters and decision was rendered in ITAT/164/2017 dated 18th January 2022, we exercise discretion and condone the delay. Accordingly, the delay is condoned. The petition for condonation of delay is disposed of. ITAT/108/2021 This appeal filed by the revenue under Section 263A of the Income Tax Act, (the Act) is directed against the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Mr. J. P. Khaitan, Senior Advocate for the respondent/assessee. It is not disputed before us that the substantial questions of law which have been raised in this appeal by the revenue have been held to be not substantial questions of law in the assessee's own case for subsequent assessment year in ITAT/250/2017 which was heard and disposed of along with ITAT/164/2017 and ITAT /239/2017 by judgment dated 18th January, 2022. The operative portions of the judgment are reproduced below. "15. The CIT (A) accepted the contention raised by the assessee. After examining the factual issues it specifically held that revaluation of an asset is not a business transaction resulting in any pecuniary gain which can form subject matter of taxation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it as a current asset. The partners transferred the said land at cost. As such, there was no profit in the hands of the partners upon transfer of the said land to the said firm. Section 45(3) of the Act is applicable only in respect of a capital asset. The said provision has no application in the instant case since what was transferred by the partners was a current asset and not a capital asset. Section 45(3) of the Act did not come into operation for the assessment year 2008-09 by reason of conversion of the developed land and building into fixed assets by the said firm or due to revaluation by the said firm of the asset so converted during the previous year ended March 31, 2008. Section 45(3) of the Act is applicable in the year of trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the tribunal agreed with CIT(A) that after conversion of inventory into fixed asset the firm revalued the developed land including construction thereon in order to bring it in line with the current market value to justify the business assistance secured by the firm from the banks to extent of nearly Rs. 250 crores. Therefore, on facts the tribunal concluded that the revaluation was not a colourable device. 18. Further more on facts it was held that there was no withdrawal by the partners from capital accounts and therefore there cannot be any income liable to tax in their hands." Thus following the above decision, the appeal filed by the revenue stands dismissed on the ground that there is no question of law, much less substantial ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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