Case Law Details
Case Name : Unique Estates Development Co. Ltd. Vs. DCIT (ITAT Mumbai)
Appeal Number : ITA No. 4598/Mum/2019
Date of Judgement/Order : 22/03/2021
Related Assessment Year : 2016-17
Courts :
All ITAT ITAT Mumbai
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Unique Estates Development Co. Ltd. Vs. DCIT (ITAT Mumbai)
INCOME FROM UNSOLD FLATS SHALL BE TREATED AS BUSINESS INCOME OF THE DEVELOPER AND NO INCOME FROM HOUSE PROPERTY ON THE BASIS OF ANNUAL LETTING VALUE OR NOTIONAL VALUE OF RENT.
FACT OF THE CASE
1. the assessee company is engaged in the business of development of real estate, development of residential complex and malls.
2. The assessee has filed the return of income for Assessment Year 2016-17 on 17.10.2016 with total income of Rs. 215,99,70,220/- and the assessee company also filed the revised return of income on 01.12.2017 and 11.12.2017 with the total income of Rs. 214,75,70,217/-.
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Author Bio
Me personally am unable to reconcile the text of the reported ITAT order, with either what the headline says or the content of the para, – ‘CONCLUSION’.
Can anyone else do ? 🤔
Suggest to Locate the related pr. posts on this website itself, and cross check.
To go by instant recollection, there was , few months ago, a proposal by the govt. , to tax notional income under the head of ‘ income from house property’ but was then deferred. Not personally aware of any further development since then.
In fact, as earlier commented on one of the Posts on this website itself, besides elsewhere, . the idea of so taxing a notional income was misconceived.
And, even according to the cited cases, followed by the itat in the instant case, promoter will be holding any unsold flat as his ‘stock- in-trade’ and, as such, will attract no taxation until such time / the year in which that is actually sold for a price; more so, only as ‘business income’ !?
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