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2020 (9) TMI 183 - AT - Income TaxRevision u/s 263 - assessee has not offered notional rent on its unsold flats, which are assessee’s stock in trade - assessee submitted that the flats are unsold stock in trade of the assessee - HELD THAT:- We find that the unsold flats are stock in trade of the assessee. The relevant provision for bringing the same under the ambit of income from house property has been introduced by Finance Act by introduction of Section 23(5). Provision in the Act for BRINGING to tax the notional rent on unsold stock of house property was brought into effect from assessment year 2018-19. In the present case, the assessment year is 2014-15 and hence the said provision is not at all applicable for the current assessment year. As referred by the learned counsel of the assessee in the decision of Hon'ble Gujrat High Court in the case of Neha Builders (P.) Ltd. [2006 (8) TMI 105 - GUJARAT HIGH COURT] it was held that notional house rent cannot be computed for stock in trade. The Hon'ble Supreme Court in the case of CIT vs Vegetable Products Ltd.,[1973 (1) TMI 1 - SUPREME COURT] has expounded that if two constructions are possible, one in favour of assessee has to be adopted. Even from this point of view on the touchstone of Hon'ble Gujrat High Court decision, as referred above, notional house rental income cannot be computed for the unsold flats of the assessee. Admittedly, when an issue is before the Hon'ble Supreme Court and has not yet been decided, the issue can be considered to be a debatable issue and in such circumstances as long as there is existence of debate about both point of view, the learned CIT is not empowered to exercise jurisdiction under Section 263 of the Act in support of one point of view to which he subscribes. This view is duly supported by the decision of Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs CIT [2000 (2) TMI 10 - SUPREME COURT]. Thus exercise of jurisdiction under Section 263 of the Act by the learned CIT is not sustainable - Decided in favour of assessee.
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