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2019 (2) TMI 1867 - AT - Income TaxAddition under the head ‘income from house property’ on the four unsold flats/ godowns by the assessee - HELD THAT:- It is an undisputed fact that assessee is in the business of Civil Engineers, Builders and Developers and had in the closing stock the four unsold flats. It is also an undisputed fact that these four flats were vacant throughout the year under consideration and no rental income was derived by the assessee during the year. We find that on identical issue, the Co-ordinate Bench of Mumbai Tribunal in the case of Runwal Constructions [2018 (2) TMI 1707 - ITAT MUMBAI] after considering the decision of Neha Builders (P) Ltd. [2006 (8) TMI 105 - GUJARAT HIGH COURT] the decision of Mumbai Tribunal in the case of C.R. Developments Pvt. Ltd., [2015 (5) TMI 1161 - ITAT MUMBAI] the decision in the case of CIT Vs. Ansal Housing and Construction [2012 (11) TMI 323 - DELHI HIGH COURT]and other decisions cited in the order has held that when the unsold flats which are held as stockin- trade and when the income from such unsold flats on its sale is treated as “income from business”, then no notional annual letting value in respect of unsold flats can be taxed under the head of “income from house property”. Revenue has not brought any material on record to demonstrate that the aforesaid decision of Mumbai Tribunal in thecase of M/s. Runwal Construction (supra) has been set aside / stayed by higher Judicial Forum. In the present case AO was not correct in bringing to tax notional annual letting value of four unsold flats under the head “income from house property”. We therefore set aside the addition made by AO. Thus, the ground of the assessee is allowed.
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