https://www.taxtmi.com/caselaws?id=778143 ITAT, MUMBAI upholds the CIT(A) and dismisses the revenue's appeal. The Tribunal found the AO erred in ignoring that assets were revalued and recorded at fair value pursuant to an amalgamation scheme approved by the HC, with excess treated as capital reserve. Land shown at fair market value became liable to capital gains only when converted from capital asset to stock-in-trade and actually sold, triggering tax under section 45(2). Taxability therefore arises on sale, so no interference with the lower authority's decision. en-us Wed, 15 Jan 2025 00:00:00 +0530 Thu, 11 Sep 2025 08:29:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778143 ITAT, MUMBAI upholds the CIT(A) and dismisses the revenue's appeal. The Tribunal found the AO erred in ignoring that assets were revalued and recorded at fair value pursuant to an amalgamation scheme approved by the HC, with excess treated as capital reserve. Land shown at fair market value became liable to capital gains only when converted from capital asset to stock-in-trade and actually sold, triggering tax under section 45(2). Taxability therefore arises on sale, so no interference with the lower authority's decision. Case-Laws Income Tax Wed, 15 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778143