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2021 (12) TMI 976 - AT - Income TaxIncome from house property - Deemed let out value of the closing stock under the head income from house property - AO adopted 8% of the cost as fair and reasonable ALV of the property - Assessee contended that the notional rent cannot be charged on the unsold flats which are closing stock of the assessee - HELD THAT:- As decided in M/S. RUNWAL CONSTRUCTIONS RUNWAL AND OMKAR ESQUARE [2018 (2) TMI 1707 - ITAT MUMBAI] in the case on hand before us it is an undisputed fact that both assessees 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’. Thus, we direct the AO to delete the addition made under Section 23 of the Act as income from house property Thus allow the grounds raised by the assessee and direct the Assessing Officer to delete the notional rent assessed on the property held as stock in trade. Grounds raised by the assessee are allowed.
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