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2021 (7) TMI 217 - AT - Income TaxIncome from house property - Taxability of annual letting value in respect of unsold stocks in the case of builder / construction companies - deemed income from unsold unit/flats which was the closing stock of the assessee under the year of consideration in view of the provisions u/s 22 & 2 - HELD THAT:- As decided in own case [2019 (3) TMI 1892 - ITAT MUMBAI] flats which could not be sold at the end of the year was shown as stock-in- trade. - Estimating rental income by the AO for flats as income from house property was not justified insofar as these flats were neither given on rent nor the assessee has intention to earn rent by letting out the flats. The flats not sold was its stock-in-trade and income arising on its sale is liable to be taxed as business income. Accordingly, we do not find any justification in the order of AO for estimating rental income from these vacant flats u/s.23 which is assessee‟s stock in trade as at the end of the year. Accordingly, the AO is directed to delete the addition made by estimating letting value of the flats u/s.23. - Decided in favour of assessee.
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