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2022 (12) TMI 874 - AT - Income TaxCorrect head of income - Addition on account of income from house property or business income - As argued assessee has granted the lease and earns rent income and thus the same cannot be treated as income from business - assessee is engaged in the business of construction and only profit on sale of constructed unit are shown as business income whereas unsold units which are shown as stock in trade forms the part of business of the assessee - HELD THAT:- It is pertinent to note that the assessee has shown closing stock and received building use permission in respect of the same. As undisputed fact that the assessee is engaged in the business of construction and only profit on sale of constructed unit are shown as business income whereas unsold units which are shown as stock in trade forms the part of business of the assessee. CIT(A) has rightly held that since the assessee was a developer and held the unit in questions income from such unit can be taxed as only business income and not as income from house property. It is pertinent to note there is no concept of deemed rent while computing business income and the CIT(A) has rightly deleted the addition. In the case of Ansal Housing Finance and Leasing Co. Ltd. [2012 (11) TMI 323 - DELHI HIGH COURT] will not be applicable in the present case as the assessee has already treated the said unsold unit as stock in trade. The decision of Hon’ble Gujarat High Court in the case of CIT vs. Neha Builders [2006 (8) TMI 105 - GUJARAT HIGH COURT] in fact is applicable in the present case as the issues herein are identical to the present case. If property is used as stock in trade then such property would become or partake the character of stock and any income from stock would be income from business and not income from property. CIT(A) was right in deleting the addition. Appeal of the Revenue is dismissed.
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