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2020 (11) TMI 218 - AT - Income TaxIncome from house property - ALV Determination - Addition on notional basis as deemed rental income applying 8% of value of the unsold flats - unsold flats held as stock in trade - HELD THAT:- Preferring the view taken in CIT vs. Neha Builders Pvt. Ltd. [2006 (8) TMI 105 - GUJARAT HIGH COURT] as per which the ALV of the unsold property held by an assessee as stock-in-trade could not be determined and brought to tax under the head ‘house property’, we herein conclude that the ALV of flats held by the assessee as part of the stock-in-trade of its business as that of a builder and developer could not have been determined and therein brought to tax under the head ‘house property’. As the said statutory provision i.e Sec. 23(5) is applicable prospectively i.e w.e.f A.Y 2018-19, the same, thus, would have no bearing on the year under consideration in the case of the present assessee before us - We direct the A.O to delete the addition made by him towards the ALV of the flats held by the assessee as stock-in-trade of its business as that of a builder and developer. - Decided in favour of assessee
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