Stock-in-Trade Amendment for Unsold Flats Applicable from AY 2018-19

Kumar Properties and Real Estate Private Limited Vs DCIT (ITAT Pune) Income Tax Appellate Tribunal (ITAT), Pune Bench, has provided significant relief to Kumar Properties and Real Estate Private Limited for the assessment year 2013-14. In a recent order, the Tribunal overturned the confirmation of a substantial addition made by tax authorities on account of “deemed rental income” from unsold flats and bungalows held as stock-in-trade. Additionally, the ITAT deleted a disallowance made under Section 14A of the Income-tax Act, 1961, relating to expenses incurred for earning exempt in...