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2019 (5) TMI 1689 - AT - Income TaxIncome from house property - deemed income - “Annual Lettable Value‟ of the vacant unsold units held by the assessee as stock-in-trade of its business of a real estate developer, were liable to be brought to tax under the head “Income from house property”, or not ? - HELD THAT:- We find that the Hon‟ble High Court of Gujarat in the case of CIT Vs. Neha Builders (P) ltd. [2006 (8) TMI 105 - GUJARAT HIGH COURT] had observed that if the business of the assessee is to construct property and sell it or to construct and let out the same, then any income derived from the immovable properties held by it as its stock-in-trade cannot be assessed under the head “Income from house property”. In HAWARE ENGINEERS & BUILDERS PRIVATE LIMITED [2018 (10) TMI 1500 - ITAT MUMBAI] had concluded that if an immovable property in the shape of flats/shops is held by the assessee as stock-in-trade of its business, then it becomes part of its trading operations, and any income derived there from would be its “business income‟ and not “Income from house property‟. On the basis of the aforesaid deliberations, the Tribunal while disposing off the aforesaid appeal had vacated the addition of the “ALV‟ that was made by the lower authorities in respect of the flats/shops which were held by the assessee before them as stock-in-trade of its business of a real estate developer. - Decided in favour of assessee.
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