Rental Income on Stock-in-Trade is Business Income: Gujarat HC

CIT Vs Neha Builders (P) Ltd (Gujarat High Court) The Gujarat High Court, in the case of CIT v. Neha Builders (P) Ltd., addressed a question regarding the classification of rental income derived from a property held as closing stock by a construction business. The core issue was whether such income should be assessed under the head “Income from house property” or “Business income” for income tax purposes. The assessee, Neha Builders (P) Ltd., a construction company, had included one of its building properties in its closing stock. Subsequently, a portion of this propert...