Revaluation of Factory Land

I am giving the following wording found in the Annual report of one of the pvt ltd companies which is self explanatory.

The revaluation has no implication in IT. The capital reserve can not be utilised for distribution amongst shareholders.

Thanks,

how can the revaluation reserve be utilised? can bonus shares be issued out of this ?

Yes. bonus shares can be issued out of such revaluation reserves

   Sorry Sir, i  beg to disagree with you.   ARR ( Asset Revaluation Reserve cannot bd uilised  for issue of bonus shares or distribution  by way of  Dividend to  Sharerholders or  setting off of Debit Balance of P & L Account.   SAt best  it  may be used for providing depreciation on the  enhanced value of Asset consequent upon upward revaluaion.   kindly refer  to Guyidancd note on Treat ment of  reserve created on Revaluation of Fixed Assets issued bvy ICAI  GN(A) 3   ( 1982)-   Page No. 10 of Compendium of Guidance Notes  as on July 1 2006).  

Dear Shri Kumar,

I feel that when the Companies Act has not prohibited the capitalisation of revaluation reserve (there is no specific provision), and the nature of guidance notes is recomendatory, the company can issue bonus shares out of revaluation reserves if its articles of association permit.

Kindly refer 1. https://www.thehindubusinessline.com/2005/08/18/stories/2005081800221100.htm
2. https://www.indlii.org/JudgementDetail.aspx?JudgementID=1752

In the F/ y 2007-2008 land have been revalued 180000/- per Katha , in this matter a/c-ing treatment was land Dr to Revaluation Reserve Cr Rs. 180000/- Per Katha , now during the yaer Land sales Rs. 100000/- per Katha . What should be made in Accounts Books as per AS-10?