The Income Tax Act did not intend to tax deemed rental income ...

Deemed Rental Income from Unsold Flats Held as Stock-in-Trade Not Taxable Before Assessment Year 2018-19.

September 17, 2024

Case Laws Income Tax AT

The Income Tax Act did not intend to tax deemed rental income from properties held as stock-in-trade prior to the assessment year 2018-19. Section 23(5), introduced from the assessment year 2018-19, permits the Assessing Officer to calculate deemed rental income on properties held as stock-in-trade, even if not let out. However, prior to this, Section 22 clearly stated that annual value of properties held as stock-in-trade for business purposes shall not be chargeable to income tax under the head "Income from House Property". The legislature's intention to tax such deemed rental income is evident only from the assessment year 2018-19 onwards, as Section 23(5) was not made retrospectively applicable. Consequently, the Assessing Officer cannot determine annual value or deemed rental income on unsold flats held as stock-in-trade for the assessment year 2016-17, and the addition made on this account must be deleted.

View Source

← Previous Next →

The Income Tax Act did not intend to tax deemed rental income ...

Deemed Rental Income from Unsold Flats Held as Stock-in-Trade Not Taxable Before Assessment Year 2018-19.

September 17, 2024

Case Laws Income Tax AT

You may also like:

Assessment u/s 153A - In the case on hand, the search was conducted on 10.08.2017 and the relevant six assessment years immediately preceding the assessment year...

Reopening of assessment u/s 147 was challenged due to lack of material relating to alleged wrongful IGST refunds for assessment year 2020-21. Disallowable expenditure...

Income from house property - Determining the ALV of flats disclosed in the stock in trade as per the Accounting standards and policies being fallowed consistently by the...

The Appellate Tribunal held that the assessment orders issued u/s 153C for the assessment years 2011-12 and 2012-13 were beyond the jurisdiction of the Assessing Officer...

ITAT quashed assessment orders under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 due to jurisdictional defects in notice issuance....

Provision in the Act for BRINGING to tax the notional rent on unsold stock of house property was brought into effect from assessment year 2018-19. In the present case,...

The case pertains to the treatment of income received from an arbitral award in the assessment year. The AO passed an assessment order u/s 143(3) after the case was...

Assessment framed u/s.153A - computation of period of 6 years / 10 years in search cases - amendment of provisions of section 1153A(1)(b) - while computing ten...

Constitutionality of Explanation to Section 10AA (1) - Exemption to SEZ unit - As principle of legitimate expectation is not applicable to the case of the petitioner and...

Assessment proceedings u/s 153C - The period of limitation and deemed date for possession of seized documents were discussed. It was held that the date of recording...

Cost inflation index for the Financial Year 2018-19 notified as 280

The ITAT held that the period of limitation for issuing a notice u/s 153C is six years from the end of the financial year preceding the date of recording satisfaction....

HC held that the Assessing Officer (AO) erroneously issued notices under Section 148 by aggregating alleged escaped income across multiple financial years 2016-17,...

Subject : Conduct of assessment proceedings through ‘E-Proceeding’ facility during 2018-19-regd.

Income from house property - estimating rental income from the unsold shops - the unsold fifty five shops should be treated as ‘stock in trade. As assessee`s case under...

Quick Updates: