ITAT Classifies Unsold Flats as Business Stock, Deletes ₹10.86 Crore Deemed Income Addition

Haware Engineers & Builders Pvt. Ltd. Vs ACIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has delivered a significant ruling for real estate developers, holding that income from unsold flats and shops held as stock-in-trade should be treated as “business income” rather than “income from house property.” This decision came in a consolidated appeal filed by Haware Engineers & Builders Pvt. Ltd. for Assessment Years (AY) 2013-14 and 2014-15. The appeals challenged the consolidated order of the CIT(A)-52, Mumbai, which had upheld additions made...