Section 23(5) taxing Unsold Flats of Real Estate Business Applicable from A.Y. 2018-19

Rajesh Dharamvir Gulati Vs PCIT (ITAT Mumbai) PCIT issued a show-cause notice u/s.263 of the Act on the ground that assessee being a builder has shown closing stock as on 31/03/2017 as ‘stock in trade’ and had not offered rental income from the unsold stock of flats in terms of Section 23(5) of the Act. Assessee specifically drew the attention of the ld. PCIT that provisions of Section 23(5) of the Act were introduced only from 01/04/2018 and would be applicable only from A.Y.2018-19 onwards. Accordingly, it was pleaded that the said provision cannot be made applicable for the year under c...