TMI Blog2023 (1) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... s [ 2015 (4) TMI 882 - BOMBAY HIGH COURT ], CIT vs. Neha Builders [ 2006 (8) TMI 105 - GUJARAT HIGH COURT ] and K. Subramanian, ITO Another vs. Siemens India Ltd. [ 1983 (4) TMI 3 - BOMBAY HIGH COURT ] concluded that the annual letting value of flats held as stock-in-trade cannot be brought to tax under the head house property . While taking such view the Tribunal distinguished the decision rendered in the case of CIT vs. Ansal Housing Finance Leasing Company Ltd. (supra). Thus, as per the decision rendered in the case of Osho Developers vs. ACIT (supra) no addition could have been made u/s. 23 of the Act in respect of vacant flats held as stock-in-trade and carried forward as closing stock. It is a well settled law that where two v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otional rent u/s. 23 of the Act. 2. Narrating the facts of case the ld. Authorized Representative for the assessee submits that the assessee is a Developer. The assessee had constructed residential building. During the Financial Year 2016-17 relevant to assessment year 2017-18, the assessee could sell only one flat. The remaining unsold vacant flats amounting to Rs.29,58,00,065/- were carry forward as closing stock. During the course of scrutiny assessment proceedings the Assessing Officer made a specific enquiry with respect to the closing stock. The Assessing Officer after being satisfied with submissions of the assessee did not make any addition on account of notional rent in respect of carry forward of closing stock i.e. unsold flats ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The ld. Authorized Representative for the assessee has reiterated the submissions made before the PCIT. The short contention on behalf of the assessee is that no notional rent is offered to tax in respect of unsold flats lying vacant held as closing stock is in line with the decision of Mumbai Bench of the Tribunal in the case of Osho Developers Vs. ACIT (supra). Whereas, the PCIT has taken a contrary view following the decision of Hon'ble Delhi High Court in the case of CIT vs. Ansal Housing Finance Leasing Company Ltd. (supra). We find that in the case of Osho Developers vs. ACIT (supra), the Mumbai Bench of the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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