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TMI Blog2022 (12) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.2,57,78,644/- on account of income from house property. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the A.O. 3. It is, therefore, prayed that the order of the Ld. CIT(A) be set aside and that of the AO be 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head 'income from house property'. The Ld. DR submitted that the decision of Hon'ble Gujarat High Court in the case of Neha Builders, 164 taxmann 342 will not be applicable in the present case and the decision in the case of CIT vs. Ansal Housing Finance and Leasing Co. Ltd., ITA No.18 of 1999, order dated 31.10.2012, passed by the Hon'ble Delhi High Court will be applicable 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the year under consideration itself. Hence, no addition can be made by taking recourse of Section 23(5) of the Act. Ld. AR relied upon the order for the CIT(A). 8. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee has shown closing stock of Rs.24,55,10,895/- and received 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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