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2023 (1) TMI 1228 - AT - Income TaxRevision u/s 263 - no notional rent is offered to tax in respect of unsold flats lying vacant held as closing stock - As submitted Assessing Officer has taken one of the possible view - HELD THAT:- We find that in the case of Osho Developers vs. ACIT [2020 (11) TMI 218 - ITAT MUMBAI] after considering judgment rendered in the case of CIT vs. Ansal Housing Finance & Leasing Company Ltd. [2012 (11) TMI 323 - DELHI HIGH COURT] and various other decisions, which inter-alia, includes decision in the case of CIT vs. Gundecha Builders [2019 (1) TMI 112 - BOMBAY HIGH COURT], CIT vs. Sane & Doshi Enterprises [2015 (4) TMI 882 - BOMBAY HIGH COURT], CIT vs. Neha Builders [2006 (8) TMI 105 - GUJARAT HIGH COURT] and K. Subramanian, ITO & Another vs. Siemens India Ltd. [1983 (4) TMI 3 - BOMBAY HIGH COURT] concluded that the annual letting value of flats held as stock-in-trade cannot be brought to tax under the head “house property”. While taking such view the Tribunal distinguished the decision rendered in the case of CIT vs. Ansal Housing Finance & Leasing Company Ltd. (supra). Thus, as per the decision rendered in the case of Osho Developers vs. ACIT (supra) no addition could have been made u/s. 23 of the Act in respect of vacant flats held as stock-in-trade and carried forward as closing stock. It is a well settled law that where two views are possible and the Assessing Officer has taken one of the possible view, the PCIT cannot substitute his view in exercise of revisional jurisdiction u/s. 263 of the Act. In the instant case the PCIT has tried to super impose his view in exercise of powers u/s. 263 of the Act over one of the possible view taken by Assessing Officer. This is not in accordance with the settled law. Thus, the PCIT has exceeded his jurisdiction in exercise of revisionary powers. Appeal of the assessee is allowed.
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