SHETH CORP PRIVATE LIMITED,MUMBAI vs. ACIT-CC-4(2), MUMBAI

ITA 5605/MUM/2025Status: DisposedITAT Mumbai24 August 2026AY 2018-1931 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, a real estate developer, had unsold finished stock of properties. The Assessing Officer (AO) added deemed income from these properties under the head 'Income from House Property'. The Commissioner of Income-tax (Appeals) confirmed this addition.

What did the Tribunal hold?

The Tribunal noted that an identical issue was decided in a related appeal where the matter was restored to the AO for verification. Therefore, the Tribunal set aside the orders of the lower authorities and allowed the appeal for statistical purposes.

What were the issues?

Whether unsold stock of properties held by a real estate developer can be taxed under the head 'Income from House Property' as deemed rental income, especially after the amendment to Section 23(5) of the Act.

Which sections of the Income-tax Act were involved?

Section 22,Section 23(5)

AI-generated summary — verify with the full judgment below

IN THE INCOME-TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE HON’BLE JUSTICE (RETD.) C. V. BHADANG, PRESIDENT & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER Sheth Developers Private v/s. Assistant Commissioner of Limited बनाम Income Tax, Central Circle Ground and 3rd Floor, Prius –4(2),Kautilya Bhavan, 4th Infinity, Paranjape B Scheme, Floor, BKC, Mumbai– Subhash Road, Ville Parle(E), 400051, Maharashtra Mumbai– 400 057, Maharashtra स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No: AAACS9943H Appellant/अपीलार्थी .. Respondent/प्रतिवादी Assistant Commissioner of v/s. Sheth Developers Private Income Tax, Kautilya बनाम Limited Bhavan, 4th Floor, BKC, Sheth House Gen A K Vaidya Mumbai – 400051, Marg, Off W Express Highway, Maharashtra Malad East, Mumbai – 400 097, Maharashtra स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No: AAACS9943H Appellant/अपीलार्थी .. Respondent/प्रतिवादी

Assessee by : Dr. K. Shivaram & Shri Rahul Hakani,ARs Revenue by : Shri Basavaraj Hiremath,(CIT-DR)a/w Shri Kavan Limbasiya, Sr. DR

Date of Hearing 10.06.2026 Date of Pronouncement 24.08.2026

P a g e | 2 ITA No. 5603, 5604, 5605 &6204/Mum/2025 A.Y. 2018-19 & 2020-21 Sheth Developers Privat

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