Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 312 - AT - Income TaxDeemed rent u/s. 23(4) - rent on unsold flats - deemed rent in respect of unsold units be brought to tax under the head “Income from house property” - assessee is a company engaged in the business of property development - As explained that the 15 unsold flats cumulatively admeasuring 17341 sq. ft. were not sold during the year under consideration and they were treated as closing stock - HELD THAT:- We note that the assessee treated the same as 15 unsold flats as stock-in-trade which means that the profits on its sale would be offered as business income and no rental income received by the assessee from such 15 unsold flats. Therefore, facts in the case of Gundecha Builders [2019 (1) TMI 112 - BOMBAY HIGH COURT] are different from the facts of the present case in hand. Thus, we reject the arguments of ld. DR of applicability of observation in the case of Gundecha Builders (supra). This Tribunal in the case of Sai Spacecon India Pvt. Ltd. [2022 (1) TMI 1361 - ITAT PUNE] held no addition on account of deemed rent on unsold flats could be made in the hands of the assessee. We hold that the order of CIT(A) is not justified in confirming the view of AO in levying deemed rent u/s. 23(4) of the Act on account of income from house property. Grounds raised by the assessee are allowed.
|