TMI Blog2020 (9) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... REME COURT] is applicable. Hence respectfully following the decision of honourable Gujarat High Court in the case of Neha Builders Pvt. Ltd. (supra) direct that the addition on account of deemed notional rent in this case is liable to be deleted. Appeal filed by the assessee stands allowed. - I.T.A. No. 3436/Mum/2019 - - - Dated:- 24-9-2020 - SHRI SHAMIM YAHYA (AM) For the Assessee : Shri Ashiskumar Bairagra For the Department : Shri Pramod Nikalje ORDER This appeal by the assessee is directed against the order of learned CIT(A) dated 26.4.2019 pertaining to assessment year 2016-17. 2. The issue raised is that the learned CIT(A) erred in sustaining the addition of rupees 3,40,459/- as deemed notional rent on unsol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -in-trade and income derived from such stocks could not be assessed as Income from House Property. On the basis of the above submissions, the assessee argued before the AO that no deemed income on the basis of annual letting value in respect of the unsold properties should be assessed in its hands. However, the AO observed that Sec.22 of the Act lays down that annual value of a property has to be assessed in the hands of the owner of property and it does not matter as to how the property is held by the owner in his books of accounts; The AO farther observed that the provisions of Sec.22 do not make any distinction between the nature of business carried on by the assessee and as long as a person is owner of the property, the provisions of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent upon unsold stock of flats of the builder and developer. There is a decision of honourable Delhi High Court in favour of the revenue and the decision of honourable Gujarat High Court is in favour of the assessee. There is no direct decision of honourable jurisdictional High Court on this subject. In this view of the matter in my considered opinion the ratio from honourable Supreme Court in the case of Vegetables Product Ltd. (supra) is applicable. Hence respectfully following the decision of honourable Gujarat High Court in the case of Neha Builders Pvt. Ltd. (supra) I direct that the addition on account of deemed notional rent in this case is liable to be deleted. I direct accordingly 10. In the result this appeal filed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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