Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 426 - AT - Income TaxIncome from house property - notional income u/s 22 - income arising from the stock-in-trade of the Appellant - ALV determination - why the deemed rent on unsold stock of completed units as shown in the balance-sheet should not be taxed under the head “Income from house property”? - HELD THAT:- We hold that the assessing officer has correctly charged notional rent on the unsold flats held as stock in Trade. We also notice that case of Inorbit Malls Pvt Ltd [2022 (10) TMI 1150 - ITAT MUMBAI] while upholding the decision of the assessing officer to levy notional rent, has given certain riders and directions and one such direction is to hold that the assessing officer is not justified in estimating the income at the rate of 8.5% of investment as ALV and that the AO should ascertain the municipal valuation for computing notional rent. In assessee's case also, we notice that the assessing officer has computed the ALV by applying the rate of 8.5% on the cost of construction i.e. investment. We direct the AO to recompute the notional rent by ascertaining the Municipal rentable value. Appeal of the assessee is dismissed.
|