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2022 (1) TMI 1041 - ITAT PUNEIncome from house property OR business income - Addition towards deemed rent on unsold vacant flats and shops held by the assessee as stock-in-trade - HELD THAT:- As decided in M/S. COSMOPOLIS CONSTRUCTION, SHAH KHANDELWAL JAIN & ASSOCIATES [2018 (9) TMI 1621 - ITAT PUNE] House property can result in respect of unsold flats held by a builder as stock in trade at the year-end. While disposing off the above referred case, the Tribunal observed that income from unsold flats could be considered only under the head "Profits and Gains from business or profession" and not "Income from House Property". CIT(A) considered these observations of the Tribunal qua the inclusion of income, if any, under the head "Business Income" and directed to include deemed annual value as business income in the impugned order. He however, did not appreciate that the Tribunal nowhere held for the inclusion of the deemed rental income under the head "Profits and Gains from business or profession". It simply directed that income, if any, from unsold flats held as stock in trade can be considered only as "Business Income". In the ultimate analysis, the Tribunal eventually deleted the addition. It is but natural that if a particular income is to be taxed under a specific head, the computational mechanism governing that head only can come into play. There is no provision under the head "Profits and Gains from business or profession" which deems the rental income from unsold flats held as stock as 'Business income'. Considering the above factual and legal position, we are of the considered opinion that the addition made by the AO and as sustained in the first appeal, is not called for - Decided in favour of assessee.
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