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2018 (9) TMI 147 - ITAT JAIPURIncome from house property - Assessing the property held as stock in trade by applying notional annual value as per the provisions of Section 23(1)(a) - Held that:- There is no dispute that the commercial space in the project in question was held by the assessee as stock in trade. Further the project was completed in the month of February itself, which is not in dispute as the Assessing Officer has also accepted this fact and assessed the income from house property only for the month of March, 2013. As far as the issue of assessing the property held as stock in trade by applying notional annual value as per the provisions of Section 23(1)(a) of the Act is concerned, there are divergent views of different Hon'ble High Courts. This is not a case of keeping the property vacant from year after year but the project itself was completed in the month of February, 2013 and therefore, as per provisions of Section 23(1)(a) of the Act, the annual letting value (ALV) of any property shall be deemed to be a sum for which the property might reasonably be expected to let from year to year. Thus, the annual letting value of the property is a sum for which the property might reasonably be expected to let out from year to year. We find that without allowing a reasonable period or time gap from the completion of construction of the property held as stock in trade to let out the same, the property cannot reasonably expect to let from year to year and fetch fair market rent just after completion of construction. Hence, in the facts and circumstances, we find that for the year under consideration, the provisions of Section 23(1)(a) of the Act cannot be applied in the property in question due to the peculiar reason that the completion certificate was obtained only in the month of February, 2013 and it is not expected to let out the property just after the completion of the project and therefore, the reasonable expected rent to be fetched by the property in question is not possible immediately after the completion without allowing a reasonable period, which is also recognized by the Legislature. Accordingly, we delete the addition - Decided in favour of assessee.
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