Unsold Flats: No Tax on Notional Rent for period Before Finance Act 2017 Amendments

K.D. Construction Vs ITO (ITAT Pune) Income Tax Appellate Tribunal (ITAT) Pune has set aside an addition of Rs. 14.52 lakhs, representing notional rent on unsold flats, for K.D. Construction for the Assessment Year 2013-14. The Tribunal’s decision, delivered on March 9, 2022, clarifies that in the absence of specific provisions, hypothetical income from unsold stock-in-trade cannot be taxed, particularly for periods preceding the Finance Act, 2017 amendments. The case originated from the assessment proceedings for K.D. Construction, a builder and developer. The Assessing Officer (AO) ide...