Case Law Details
ITO Vs. Arihant Estates Pvt. Ltd (ITAT Mumbai)
In the case on hand before us it is an undisputed fact that both assessees have treated the unsold flats as stock in trade in the books of account and the flats sold by them were assessed under the head ‘income from business’. Thus, respectfully following the above said decisions we hold that the unsold flats which are stock in trade when they were sold they are assessable under the head ‘income from business’ when they are sold and therefore the AO is not correct in bringing to tax notional annual letting value in respect of those unsold flats under the head ‘income from house property’.
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal is filed by the Revenue against the order of the Commissioner of Income-tax (Appeals) – 4, Mumbai dated 18.07.2016 for the Assessment Year 2012-13.
2. The only issue in the appeal of the Revenue is with respect to computation of notional annual letting value on unsold shops which were held as stock in trade by the assessee.
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