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2020 (2) TMI 1089 - ITAT MUMBAIIncome from house property - computing the ALV of unsold units - AO treated the Annual Letting Value (ALV) of unsold unit and on the basis of ALV so computed and granting 30% deduction under section 24, brought the income of such units under the head “Income from house property” - HELD THAT:- Coming to the facts of the present case, when the fats are not at variance as the assessee has shown the unsold unit as opening stock. Therefore, respectfully following the decisions of coordinate bench the and the decisions of Gujarat High Court in Neha Builders [2006 (8) TMI 105 - GUJARAT HIGH COURT] we are of the view that the AO was not justified in bringing the unsold flat to bring it under income from house property. The submission of the ld DR that the legislature has already brought the amendment in section 23(5) to bring the unsold unit after a vacancy period of one year is not acceptable to us as the said amendment was brought by Finance Act, 2017 and is applicable from 01.04.2018, thus, the said amendment is not applicable for the year under consideration. Amendment inserted in section 23(5) is applicable w.e.f. 01-04-2018 and is not applicable for the year under consideration and in view of the aforesaid discussion and on the basis of decision of co-ordinate bench of this Tribunal, we are of the view that the AO was no justified in computing the ALV of unsold units and bringing the same under the head “Income from house property”. In the result, ground 1 of the appeal is allowed.
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