Revaluation of Land by firm after conversion of inventory into fixed asset – colourable device?

PCIT Vs Orchid Griha Nirman Pvt. Ltd. (Calcutta High Court) 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. FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT We have heard Mr. P.K. Bhowmick, learned standing counsel for the appellant/rev...