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| The Tax Publishers2021 TaxPub(DT) 0318 (Mum-Trib) INCOME TAX ACT, 1961
Section 14
Unsold flats were stock-in-trade, and when they were sold gains erising there from assessable under the head 'Income from business' and, therefore, AO was not correct in bringing to tax notional annual letting value in respect of those unsold flats under the head 'Income from house property'.
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Head of income - Income from House property or Business income - AO taxed notional annual letting value under the head 'Income from house proeprty' in respect of the unsold flats. -
Assessee-company was engaged in real estate development. AO taxed notional annual letting value under the head 'Income from house proeprty' in respect of the unsold flats. Held: Assessee had treated unsold flats as stock-in-trade in books of account and flats sold by assessee were assessed under the head 'Income from business'. Therefore, unsold flats which were stock-in-trade, when they were sold they were assessable under the head 'Income from business' and, therefore, AO was not correct in bringing to tax notional annual letting value in respect of those unsold flats under the head 'Income from house property'.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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