TNCD LLP.,COIMBATORE vs. ITO, NCW-1(1), CHENNAI

ITA 2602/CHNY/2025Status: DisposedITAT Chennai11 February 2026AY 2018-19Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI S.R.RAGHUNATHA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the provisions for deemed house property income were not entirely applicable as the units were considered work-in-progress. The penalty was deleted as it was based on a deeming provision and not misreporting.

What were the facts?

The assessee, a LLP engaged in construction, was assessed on unsold completed housing units. The Assessing Officer (AO) treated these as house property and levied notional income. A penalty was also levied for under-reporting income.

What were the issues?

Whether unsold completed housing units can be treated as house property for deemed rental income, and if a penalty for misreporting is leviable on additions made under deeming provisions.

Which sections of the Income-tax Act were involved?

Section 23(1),Section 23(5),Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S.R.RAGHUNATHA

Hearing: 20.11.2025Pronounced: 11.02.2026

PER S. R. RAGHUNATHA, AM:

These appeals of the assessee are filed against the separate orders of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, (in short ‘ld.CIT(A)’) for the assessment year 2018-19, both dated 09.07.2025 against the assessment orders passed by the AO, NFAC, Delhi, u/s.143 (3) r.w.s 144B of the Income Tax Act, 1961 (in short ‘the Act’) dated 20.09.2021 and the penalty order passed by the AO

The order continues below.

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