No Addition for Deemed Rental Income on Unsold Flats Held as Stock-in-Trade for AY 2015-16

Pegasus Properties Pvt. Ltd. Vs DCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai has, in a significant ruling, provided clarity on the taxation of unsold inventory for real estate developers and the allowability of Section 80G deductions for Corporate Social Responsibility (CSR) expenses. The case involved Pegasus Properties Pvt. Ltd. and its appeal against additions made by the Deputy Commissioner of Income Tax (DCIT) for Assessment Year 2015-16. The core of the dispute revolved around two primary issues: the notional income from unsold flats treated as “stock-in-tradeR...