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2021 (9) TMI 623 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D to the extent of exempt income - HELD THAT:- As relying on decision of the Hon’ble Supreme Court in the case of State Bank of Patiala [2018 (11) TMI 1565 - SC ORDER] in which the Hon’ble Supreme Court uphold the decision of the Hon’ble Punjab & Haryana High Court [2017 (5) TMI 1551 - PUNJAB AND HARYANA HIGH COURT] in which the disallowance was restricted to the exempt income - Also held in JOINT INVESTMENTS PVT LTD [2015 (3) TMI 155 - DELHI HIGH COURT] and KOTAK SECURITIES LIMITED [2018 (9) TMI 1244 - ITAT MUMBAI] expenses to earn the exempt income was restricted to the extent of exempt income - thus we affirm the finding of the CIT(A) on this issue and decide this issue in favour of the assessee. MAT computation - Disallowance u/s 14A while computing the book profit u/s 115JB - HELD THAT:- No disallowance u/s 14A r.w. Rule 8D is required while computing the book profit u/s 115JB of the Act. The facts are not distinguishable at this stage. The issue has squarely covered by the decision in case of Vireet Investments Pvt. Ltd.[2017 (6) TMI 1124 - ITAT DELHI], Bhushan Steel Ltd. [2015 (9) TMI 1424 - DELHI HIGH COURT] therefore, we are of the view that the finding of the CIT(A) is quite justifiable which is not liable to be interfered with at this appellate stage. Income from house property - addition on account of alleged Notional Annual Letting value of unsold flat held as stock in trade - HELD THAT:- The issue is squarely covered by the decision of the sister concern case titled as Runwal Builders Pvt. Ltd [2018 (2) TMI 1707 - ITAT MUMBAI] in which the income has been assessed as income from business in similar circumstances. The Hon’ble Gujarat High Court in the case of CIT Vs. Neha Builders Pvt. Ltd [2006 (8) TMI 105 - GUJARAT HIGH COURT] also speaks the same thing in the same sense. If, the property is used stock-in-trade then the said property would be become or part take the stock. Any income derived in stock would be the income from business and not the income from the house property. The assessee business is to construct the property and to sell and to construct and let out the same then it would be the income from business and accordingly liable to be treated. In view of the said discussion, we are of the view that the finding of the CIT(A) is not correct, hence, we set aside the finding of the CIT(A) and direct the AO to treat the said income as income from the business - Decided in favour of the assessee.
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