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TMI Blog2019 (2) TMI 1867X X X X Extracts X X X X X X X X Extracts X X X X ..... tractors etc. under the name and style of M/s. Pinnacle Constructions. Assessee electronically filed his return of income for A.Y. 2011-12 on 29.09.2012 declaring total income of Rs. 19,59,688/-. Thereafter, the case was selected for scrutiny and subsequently the assessment was framed u/s 143(3) of the Act vide order dt27.03.2015 and the total income was determined at Rs. 22,28,490/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who vide order dt.31.05.2018 (in appeal No.Pn/CIT(A)-11/DCIT, Cen. Cir.1(1)/PN/22/2015-16) dismissed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceedings on perusing the Profit and Loss account, AO noticed that assessee having four flats / godowns which were vacant. AO was of the view that as per the provisions of Sec.23(4) of the Act, if assessee is owner of two or more, houses, then the annual value of the house other than the house in respect of which assessee has exercised options, would be deemed that the property is being let out. The assessee was therefore asked to explain why the deemed income should not be brought tax. Assessee made submission inter-alia stating 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 V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Hon'ble High Court, it is held that the estimation of deemed rent from flats held as stock-in-trade is correct. Now coming to next ground of appeal regarding the determination of ARV the vacant flats, it was the contention of the Appellant that the same should be on the basis of the Municipal Valuation. However, neither during assessment, nor before me has any documentary evidence been given as to how the estimated value is incorrect / higher than the Municipal Valuation. The Assessing officer, 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 wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Hon'ble Gujarat High Court in the case of CIT Vs. Neha Builders (P) Ltd., reported in [2007] 164 Taxmann 342, the decision of Mumbai Tribunal in the case of C.R. Developments Pvt. Ltd., (ITA No.4277 of 2012 order dt.13.05.2015) the decision in the case of CIT Vs. Ansal Housing and Construction reported in [2013] 29 taxmann.com 303 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". The relevant findings of the Co-ordinate Bench of the Tribunal is as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X
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