Flats held as stock in trade and validity of its taxation on Notional Basis
ITAT MUMBAI
DCIT. CIR-3 (1) (1) MUMBAI VERSUS M/S. BENGAL SHAPOORJI HOUSING DEVELOPMENT PVT. LTD.
ITA No.2927/Mum/2019
Short Overview of the case:
Addition on account of notional rent u/s.23
whether or not the ALV of the properties held by the assessee as stock-in-trade of its business as that a real estate developer is liable to be brought to tax in its hands under Sec.22?
ITAT held as under:
As decided in own case [2021 (4) TMI 849 – ITAT MUMBAI] property in question was held by the assessee as stock-in-trade of its business of construction and development of real estate properties.
As observed the solitary issue involved in the present appeal is as to whether or not the ALV of the properties held by the assessee as stock-in-trade of its business as that a real estate developer is liable to be brought to tax in its hands under Sec.22.
As stated by the ld. A.R, and rightly so, the issue herein involved is squarely covered by the order of the ITAT ‘C’ bench, Mumbai, in the case of M/s Osho Developers Vs. ACIT-32, Mumbai, [2020 (11) TMI 218 – ITAT MUMBAI] wherein direct the A.O to delete the addition made by him towards the ALV of the flats held by the assessee as stock-in-trade of its business as that of a builder and developer
As such, we herein concur with him that the A.O was in error in assessing the notional lettable value of the flats held by the assessee as stock-in-trade of its business as that of a real estate developer.
Appeal filed by the revenue is dismissed.
