TMI Blog2019 (2) TMI 1867X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed the appeal of assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has raised the following grounds : 1. The learned CIT(A) erred in confirming the addition of ₹ 2,68,800/- u/s 23 (4) of the Act made by the A 0 by estimating rent on 4 unsold flats @ ₹ 8000/- per month on the ground that levy of notional tax u/s 24 is dependent on ownership of the property and not on the fact that the appellant carries on his business as letting, out of such property, without appreciating the submissions given by the appellant and relying on the decision of the Hon ble High Court. 2. The ld.CIT(A) failed to appreciate the fact that the unsold flats are stock in trade of the appellant, when they a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that flats / godowns are held as stock in trade and they were not let out. Without prejudice to the contention of the assessee that no deemed rent is leviable, it was further submitted that Annual Letting Value (ALV) as per the Corporation Tax was ₹ 3,565/- and the annual value cannot exceed the municipal valuation. The submission of the assessee was not found acceptable to the AO. AO noted that no documentary evidence was furnished by the assessee in support of his contention that the ALV of the unsold flats was ₹ 3,565/-. He, on the basis of the enquiry made found that the municipal rental value on the four flats / godowns was around ₹ 8,000/- per month. He, accordingly determined the annual value of the four properti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer, on the other hand, has based his estimation by conducting field enquiries and finding the monthly fair market rent. Since no specific alternate rent has been given by the Appellant on any basis, I see no reason to interfere with the estimate by the AO. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us. 5. Before us, Ld.A.R. reiterated the submissions made before AO and Ld.CIT(A) and further submitted that the issue of deemed rent is covered in assessee s favour by the decision of M/s. Cosmopolis Construction (in ITA Nos.230 and 231/PUN/2018 dt.12.09.2018). He also relied on the decision of Mumbai Tribunal in the case of C.R. Developments Pvt. Ltd. Vs. CIT (ITA No.4277 of 2012 order dt.13.05.2015) and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 . The relevant findings of the Co-ordinate Bench of the Tribunal is as under : 10. In the case on hand before us it is an undisputed fact that both assessees have treated the unsold flats as stock in trade in the books of account and the flats sold by them were assessed under the head income from business . Thus, respectfully following the above said decisions we hold that the unsold flats which are stock in trade when they were sold they are assessable under the head income from business when they are sold and therefore the AO is not correct in bringing to tax notional annual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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