SHAMDARSHAN PROPERTIES PRIVATE LIMITED ,MUMBAI vs. ITO WARD 3(3)(2), MUMBAI

ITA 2777/MUM/2023Status: DisposedITAT Mumbai22 January 2024AY 2014-1518 pages
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What did the Tribunal hold?

The Tribunal held that unsold inventory of flats, which are stock-in-trade, cannot be assessed as 'Income from House Property'. Income arising from the sale of such stock-in-trade is taxable as business income.

What were the facts?

The assessee, a property developer, treated unsold flats as stock-in-trade. The Assessing Officer (AO) treated these unsold flats as deemed to be let out and taxed notional rental income under the head 'Income from House Property'. The CIT(A) upheld the AO's action.

What were the issues?

Whether notional rental income from unsold flats, treated as stock-in-trade, can be taxed under the head 'Income from House Property'.

Which sections of the Income-tax Act were involved?

Section 22,Section 23(1)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “G” BENCH MUMBAI

Before: SHRI PRASHANT MAHARISHI & SHRI PAVAN KUMAR GADALE

For Appellant: DR by:
Hearing: 18/01/2024Pronounced: 22/01/2024

Heard together (2 matters)

ITA No. 2779/Mum/2023
ITA No.2777/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

PER PAVAN KUMAR GADALE - JM: These two appeals are filed by the assessee against the separate orders of National Faceless Appeal Centre(NFAC) Delhi/CIT(A passed under section 143(3) and U/sec 250 of the Income Tax Act, 1961 (“the Act). ITA No. 2779 & 2777/Mum/2023 AY 2012-13 & 2014-15 M/s Shamdarshan Properties pvt. LTd

2.

Since the issues in these two appeals are similar and identical, hence are clubbed, heard and a consolidated order passed. For the sake of convenience,

The order continues below.

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