No Deemed Rent on Unsold Stock-in-Trade for AY 2013-14: ITAT Mumbai

Chamber Construction Pvt. Ltd Vs DCIT (ITAT Mumbai) In a significant ruling offering relief to real estate developers, the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has held that no deemed rental income can be computed under Section 22 of the Income Tax Act, 1961, for unsold flats held as stock-in-trade in completed projects. This decision, delivered in the appeals of Chamber Construction Pvt. Ltd. Vs DCIT for Assessment Years 2013-14 and 2014-15, reinforces the principle that properties treated as business stock should generate business income, not income from house property. The ca...