Addition of Annual let out value of unsold flats held as stock unsustainable: ITAT Mumbai

Shamdarshan Properties Pvt. Ltd. Vs DCIT (ITAT Mumbai) ITAT Mumbai held that determination of Annual Let Out Value (ALV) of unsold flats held as stock-in-trade is not sustainable in law. Accordingly, addition of ALV of unsold flats deleted. Facts- During scrutiny assessment, AO found that the assessee has constructed 20 flats in a building known as “Sham Sharan” and the assessee disclosed 6 flats as transferred to fixed assets and remaining 14 flats are treated as stock in trade and are disclosed in the balance sheet. AO found that the assessee company has disclosed inventory value of 14 f...