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2018 (7) TMI 655 - AT - Income TaxComputation of notional annual letting value on unsold shops held as stock in trade by the assessee - Held that:- As decided in M/S. RUNWAL CONSTRUCTIONS RUNWAL AND OMKAR ESQUARE VERSUS ACIT CENTRAL CIRCLE-4 (1) , MUMBAI [2018 (2) TMI 1707 - ITAT MUMBAI] in the case on hand before us it is an undisputed fact that both assessee have treated the unsold flats as stock in trade in the books of account and the flats sold by them were assessed under the head ‘income from business’. Thus, respectfully following the above said decisions we hold that the unsold flats which are stock in trade when they were sold they are assessable under the head ‘income from business’ when they are sold and therefore the AO is not correct in bringing to tax notional annual letting value in respect of those unsold flats under the head ‘income from house property’. We direct the AO to delete the addition made under Section 23 of the Act as income from house property.” Admittedly in this case on hand the unsold property being shops were held as stock in trade. In the circumstances, respectfully following the above decision we uphold the order of the Ld.CIT(A) and reject the ground raised by the Revenue.
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