Actual Rental Income from Stock-in-Trade of Flats taxable as Business Income

Shivsagar Builders P. Ltd. Vs ACIT (ITAT Delhi) New Delhi – In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Delhi Bench, has allowed an appeal by Shivsagar Builders P. Ltd. against the Assistant Commissioner of Income Tax (ACIT), setting aside two major additions to the company’s income. The tribunal ruled that the taxable revenue from a joint development project should be based on the final settlement amount as per agreements and confirmations, not on a higher gross figure. Furthermore, it held that notional rent cannot be charged on properties held as stock-in-trad...