TMI Blog2018 (6) TMI 1781X X X X Extracts X X X X X X X X Extracts X X X X ..... be sold at the end of the year and were shown as stock-in-trade , estimating rental income on notional ALV was not justified - when, there is no evidence on record that these units were either given on rent or that the assessee has intention to let out those units. The Units which are not sold are stock-in-trade and the income arising of its sale is liable to be taxed as Business Income, therefore, we do not find any justification in calculating notional ALV of the vacant units. Therefore, we direct the Assessing Officer to delete the addition made on estimate basis - Decided in favour of assessee. - ITA No.5620/Mum/2016 - - - Dated:- 26-6-2018 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y deduction under section 24a. On appeal before the ld. CIT(A), the action of Assessing Officer was confirmed. Therefore, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us. 3. We have heard the ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. The ld. AR of the assessee submits that the assessee offered income in respect of sale of unit. The assessee has shown the balance unsold unit as stock-in-trade. The assessee was having such unsold unit of ₹ 8,94,42,150/- under the head Closing Inventories . The assessee was holding unsold unit as stock-in-trade to earn business income and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is liable to be taxed on notional ALV of unsold units under the head Income from House Property . The ld. AR of the assessee is relying upon the decision of Hon ble Gujarat High Court in CIT vs. Neha Builders P. Ltd. (supra) wherein it was held that when the assessee-company engaged in the business of construction of property and one of the building/property was included in the closing stock in the balance-sheet drawn by assessee, the property would partake the character of stock and any income derived from stock would not be taken to be Income from House Property. The Hon ble High Court further held that business of the assessee is to construct the property and sale it, then that would be the business and business stock, would be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame analogy in the case in hand, the assessee is engaged in the business of construction and development, which is the main business of the assessee, the units which could not be sold at the end of the year and were shown as stock-in-trade , estimating rental income on notional ALV was not justified. Particularly when, there is no evidence on record that these units were either given on rent or that the assessee has intention to let out those units. The Units which are not sold are stock-in-trade and the income arising of its sale is liable to be taxed as Business Income, therefore, we do not find any justification in calculating notional ALV of the vacant units. Therefore, we direct the Assessing Officer to delete the addition made on est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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