ITAT quashes Annual Letting Value determination of Un-sold Units for AY 2014-15

Pride Purple Properties Vs DCIT (ITAT Pune) In a pivotal ruling, the Income Tax Appellate Tribunal (ITAT), Pune, in the case of Pride Purple Properties Vs DCIT, has overturned the retrospective determination of the annual letting value of un-sold residential units based on a prospective amendment. The judgement has significant implications for the real estate industry, particularly for builders holding unsold units. Analysis: The ITAT, considering the provisions of section 23(4) of the Income-tax Act, 1961, highlighted that the Finance Act, 2017’s introduction of sub-section (5) to secti...