TMI Blog2022 (12) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that the assessee is engaged in the business of construction and only profit on sale of constructed unit are shown as business income whereas unsold units which are shown as stock in trade forms the part of business of the assessee. CIT(A) has rightly held that since the assessee was a developer and held the unit in questions income from such unit can be taxed as only business income and not as income from house property. It is pertinent to note there is no concept of deemed rent while computing business income and the CIT(A) has rightly deleted the addition. In the case of Ansal Housing Finance and Leasing Co. Ltd. [ 2012 (11) TMI 323 - DELHI HIGH COURT] will not be applicable in the present case as the assessee has already treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restored to the above extent. 3. The assessee company is engaged in the business of real estate development/construction and has developed a Commercial Complex namely Amrapali lake View Tower at Vastrapur, Ahmedabad. During the year the assessee has shown income from house property and from business profession. The assessee filed return of income on 17.10.2016 declaring total income of Rs.2,09,18,270/-. During the course of assessment proceedings, the Assessing Officer observed that the assessee has shown closing stock of Rs.24,55,10,895/-. The Assessing Officer further noticed that the unit in the project was completed as the BU permission letter had been received by the assessee. Therefore, the assessee should have treated these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present case. The Ld. DR relied upon the Assessment Order. 6. The Ld. AR submitted that the assessee is engaged in the business of real estate development/construction. The assessee has shown closing stock of Rs.24,55,10,895/- and had received building use permission in respect of the same. Ld. AR submitted that if the assessee is held as stock in trade then such stock and any income derived from stock shall be taxable as business income. Concept of deeming rent cannot be applied in case where property is held as stock in trade. Ld. AR further submitted that it is undisputed fact that the assessee is engaged in the business of construction of property on sale of constructed unit is shown as business income. Ld. AR further submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... building use permission in respect of the same. It is undisputed fact that the assessee is engaged in the business of construction and only profit on sale of constructed unit are shown as business income whereas unsold units which are shown as stock in trade forms the part of business of the assessee. The CIT(A) has rightly held that since the assessee was a developer and held the unit in questions income from such unit can be taxed as only business income and not as income from house property. It is pertinent to note there is no concept of deemed rent while computing business income and the CIT(A) has rightly deleted the addition. The decision of Hon ble Delhi High Court in the case of Ansal Housing Finance and Leasing Co. Ltd. (supra) wil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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