Unsold Properties as Stock-in-Trade Exempt from Deemed Rental Pre Section 23 Amendment

Saranga Estates Pvt. Ltd. Vs DCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai has ruled in favor of Saranga Estates Pvt. Ltd., a property developer, in a dispute concerning the taxation of deemed rental income from unsold flats held as stock-in-trade. The tribunal’s decision, dated March 13, 2019, for the Assessment Year 2012-13, addresses whether notional rental income from such properties should be assessed under “income from house property.” The case originated from the assessment proceedings for Saranga Estates Pvt. Ltd., a company engaged in construction an...