COMMISSIONER OF NCOME TAX vs. ANSAL BUILDWELL LIMITED

ITA - 169 / 2008HC Delhi29 November 20126 pages
For Petitioner: PREM LATA BANSAL
AI SummaryAllowed

What did the High Court hold?

The tribunal held that the ownership of property is the basis for income tax levy, not necessarily actual letting. The ALV method is a permissible way to determine taxable income, even if it's notional, and applies regardless of whether the property is occupied or used for business.

What were the facts?

The assessee, a builder, held unsold flats as stock-in-trade. The Assessing Officer sought to tax the notional annual letting value (ALV) of these unsold flats. The assessee argued that since the flats were not let out and were part of inventory, ALV should not be applied.

What were the issues?

Whether notional annual letting value of unsold flats held as stock-in-trade is taxable under the Income Tax Act. Whether ownership alone, irrespective of actual letting, triggers tax liability on property.

Which sections of the Income-tax Act were involved?

Section 22,Section 23

AI-generated summary — verify with the full judgment below

$-36 to 40 '! * IN THE HIGH COURT OF DELHI AT NEW D]|LHI + ITA 933/2005 |i li COMMISSIONER OF INCOME TAX ...li. Appellant Through; Mr. N.P. Sahni and ]|ls. Suruchi Aggarwal, Advocates, jl li Versus ANSAL BUILDWELL LTD. Respondent Through; Mr. Satyen Sethi and Mr. Arta Trana Panda, Advocates. |i WITH ij + ITA 148/2007 H !j COMMISSIONER OF INCOME TAX ...j. Appellant Through; Mr. N.P. Sahni and Ms. Suruchi Aggarwal, Advocates, ij !i Versus |i ANSAL BUILDWELL LTD. Respondent Through; Mr. Satyen Sethi and Mr. Arta Trana Panda, Advocates. [i WITH If ii + ITA 169/2008 COMMISSIONER OF NCOME TAX ....: Appellant Through; Mr. N.P. Sahni and Ms. Suruchi Aggarwal, Advocates, 'j Versus ITA 933/2005 and connected matters ;| Page 1 to 6 2012:DHC:7780-DB

J) + ANS AL B UILDWELL LIMITED Respondent Through: Mr. Satyen Sethi and-Mr. Arta Trana Panda, Advocates. h WITH ITA 1071/2008 COMMISSIONER OF INCOME TAX DELHI i CENTRAL-I Appellant Through: Mr, N.P. Sahni and Ms. Suruchi Aggarwal, Advocates. ;; Versus ANSAL BUILDWELL LTD. Respondent Through: Mr. Satyen Sethi and Mr. Arta Trana Panda, Advocates. AND ; + ITA 582/2010 COMMISSIONER OF INCOME TAX . .. Appellant Through

The order continues below.

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