TMI Blog2021 (10) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... RAT HIGH COURT ] and the income derived from stock would be income from business and profession and not from income from house property . We find that assessee has shown business income from rent received from letting out of 231 shops and rent received therefrom is accepted as income from business and profession by Revenue. Therefore, respectfully following the decision of Hon ble Gujarat High Court in Neha Builders (P.) Ltd., the addition on account of income from property is with regard to 90 shops which are allowing vacant being stock-intrade cannot be brought to tax. Similar view was taken by Co-ordinate Bench in Jaiprakash Khanchand Aswani [ 2018 (12) TMI 1963 - ITAT SURAT ] Appeal of the assessee is allowed. - ITA No. 151/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry any of the grounds of appeal. 2. Brief facts of the case are that the assessee is allegedly engaged in the construction and development of textile market. The assessee filed its return of income for the Assessment Year 2013-14 declaring income of Rs.10.47 crore. The case was selected for scrutiny. During the assessment, the Assessing Officer (AO) noted that assessee has shown the rental income of Rs.2.13 crore. The assessee was asked to furnish the details of shops which remain unsold during the year and the shops which were given on rent. In response to the show cause notice, the assessee stated that 90 shops remained in closing stock and around 231 shops were given on rent. Unsold shops are shown as stock-in-trade and have shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maining sole ground which relates to addition of Rs.45.36 lakhs as income from house property in respect of 90 shops. The ld.AR of the assessee submits that assessee is engaged in the construction of taxable market which known as Millennium Textile Market. The shops which are complete in all respects and remained unsold, they are rented out temporarily and rent so derived on such shops have been offered for taxation under the head income from business and profession , which has been accepted by the Department. The assessee has no other income than business income. During the relevant period under consideration 90 shops/remained unsold, the assessee has shown those shops as stock-intrade. The AO taxed the notional rental value of those unso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legedly lying vacant. The assessee is claiming those shops as stock in trade. The Lower Authorities brought those shops under taxation under the head income from house property and thereby calculated the ALV and after granting 30% standard deduction worked out the ALV of those shops of Rs.45,36,000/-. During the hearing before us, the ld.AR of the assessee vehemently submitted that assessee is a builder and unsold shops/units are stock-in-trade and cannot be brought to tax under the head income from house property as held by Hon ble Jurisdictional High Court in Neha Builders (P.) Ltd. and the income derived from stock would be income from business and profession and not from income from house property . We find that assessee has sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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