TMI Blog2017 (12) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case, assessee is engaged in business of construction and development, which is main object of the assessee company. The three flats which could not be sold at the end of the year was shown as stock-in-trade. Estimating rental income by the AO for these three flats as income from house property was not justified insofar as these flats were neither given on rent nor the assessee has intention to earn rent by letting out the flats. The flats not sold was its stock-in-trade and income arising on its sale is liable to be taxed as business income. Accordingly, we do not find any justification in the order of AO for estimating rental income from these vacant flats u/s.23 which is assessee's stock in trade as at the end of the year. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from House Property by reducing therefrom deduction under Section 24 of the Income Tax Act @30% amounting to ₹ 5,04,000/-) at ₹ 10,17,450/- and added the same in the income of the assessee under the head income from house property. Assessee went in appeal before the CIT(A). The CIT(A) confirmed the order of the AO. 4. Before us the learned A.R. relied on the order of the C Bench of this Tribunal in ITA No. 4277/Mum/2012 in the case of C.R. Developments Pvt. Ltd. Vs. JCIT in which the Tribunal vide order dated 13.05.2015 under para 5 took the view that estimating rental income of by the AO for the three flats shown as stock in trade as income from house property was not justified in so far as these flats were neither given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Investments Ltd. Vs. CIT, reported in (2015) 42 SCD 651, vide judgment dated 9-4-2015 has held that where assessee company engaged in the activity of letting out properties and the rental income received was shown as business income, the action of AO treating the rental income as income from house property in place of income from business shown by the assessee was held to be not justified. The Hon ble Supreme Court held that since the assessee company s main object, is to acquire and held properties and to let out these properties, the income earned by letting out these properties is main objective of the company, therefore, rent received from the letting out of the properties is assessable as income from business. On the very same an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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