Case Law Details
Runwal Constructions Vs DCIT (ITAT Mumbai)
Introduction: The recent order by the Income Tax Appellate Tribunal (ITAT) Mumbai in the case of Runwal Constructions vs DCIT has significant implications. The appeals, arising from orders dated 10-08-2017, involve a dispute over the addition of notional Annual Letting Value (ALV) on unsold flats held as stock-in-trade by Runwal Constructions.
Detailed Analysis:
1. Background: Runwal Constructions, a partnership firm engaged in the business of builders and developers, faced scrutiny during assessment. The assessing officer proposed the addition of notional ALV on unsold flats, treating them as ‘Income from house property.’
2. Assessee’s Objection: The assessee objected to the proposed addition, arguing that the issue had been settled in their favor by a previous Tribunal decision. However, both the assessing officer and the Commissioner (Appeals) upheld the additions.
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