Dismissing the appeal of the Revenue the Tribunal held on the facts that, if at all any income accrued or arose owing to revaluation of the assessee it was an issue which had to be dealt with in the assessment of the firm which was a separate taxable entity and that invoking of section 45(3) which had no application in the assessment year 2008-09 was unjustified since the year of transfer of reserve was the financial year ended March 31, 2006 and that notwithstanding that the State Government had revised the guideline value for the purpose of stamp duty between 2004-and 2007, in accordance with the accounting principles the land held as inventory was shown at its cost and therefore no undervaluation was done by the assessee, that after conversion of inventory into fixed asset the firm revalued the developed land including the 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 the extent of Rs. 250 crores and that therefore, the revaluation of the asset was not a colourable device. On appeal the High court affirmed the order of the Tribunal. SLP of Revenue is dismissed.  (AY. 2008-09)