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2021 (10) TMI 1368 - AT - Income TaxIncome from house property - 90 shops which are allegedly lying vacant - assessee is claiming those shops as stock in trade - Lower Authorities brought those shops under taxation under the head “income from house property” and thereby calculated the ALV and after granting 30% standard deduction worked out the ALV of those shops - HELD THAT:- As Assessee vehemently submitted that assessee is a builder and unsold shops/units are stock-in-trade and cannot be brought to tax under the head “income from house property” as held by Hon’ble Jurisdictional High Court in Neha Builders (P.) Ltd. [2006 (8) TMI 105 - GUJARAT HIGH COURT] and the income derived from stock would be income from “ business and profession” and not from “income from house property”. We find that assessee has shown business income from rent received from letting out of 231 shops and rent received therefrom is accepted as income from business and profession by Revenue. Therefore, respectfully following the decision of Hon’ble Gujarat High Court in Neha Builders (P.) Ltd., the addition on account of income from property is with regard to 90 shops which are allowing vacant being stock-intrade cannot be brought to tax. Similar view was taken by Co-ordinate Bench in Jaiprakash Khanchand Aswani [2018 (12) TMI 1963 - ITAT SURAT] Appeal of the assessee is allowed.
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