Unsold flats are stock-in-trade not subject to notional house property income

Runwal Constructions Vs ACIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT), Mumbai bench, has allowed appeals filed by entities within the Runwal Constructions group for the Assessment Year 2012-13. The appeals challenged orders from the Commissioner of Income Tax (Appeals) [CIT(A)] that upheld the Assessing Officer’s (AO) decision to levy tax on the notional annual letting value (ALV) of unsold flats held as stock-in-trade. This verdict addresses a persistent area of dispute between real estate developers and income tax authorities regarding the classification of income from unsold...