ITAT Mumbai Rules on Taxation of Unsold Property for Sabarmati Capital One

Sabarmati Capital One Limited Vs DCIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai has issued a significant ruling in the cross-appeals between Sabarmati Capital One Limited and the Deputy Commissioner of Income Tax (DCIT) for Assessment Year 2015-16. The core of the dispute revolved around the taxability of unsold real estate inventory under Section 22 of the Income Tax Act, 1961, and the scope of the Assessing Officer’s (AO) jurisdiction following a revision order under Section 263. The assessee, Sabarmati Capital One Limited, a real estate company, had filed its retur...