https://www.taxtmi.com/caselaws?id=274971 The ITAT Mumbai held that rental income could not be imputed under section 23 on three unsold flats held as stock-in-trade by the assessee engaged in construction business, as there was no intention to let them out. The flats were correctly treated as business assets, and income on their sale is taxable as business income. The AO's addition estimating notional rent was deleted. Regarding deduction under section 54EC, the AO restricted the claim to Rs. 50 lakhs citing the statutory limit, disallowing the additional Rs. 50 lakhs invested after 31.03.2009. The CIT(A) upheld this, but the ITAT allowed the full Rs. 1 crore deduction, following Mad HC precedent, noting the legislative intent and subsequent amendment clarifying the limit applies per financial year. The appeal was allowed in favor of the assessee. en-us Wed, 13 May 2015 00:00:00 +0530 Fri, 25 Jul 2025 16:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274971 The ITAT Mumbai held that rental income could not be imputed under section 23 on three unsold flats held as stock-in-trade by the assessee engaged in construction business, as there was no intention to let them out. The flats were correctly treated as business assets, and income on their sale is taxable as business income. The AO's addition estimating notional rent was deleted. Regarding deduction under section 54EC, the AO restricted the claim to Rs. 50 lakhs citing the statutory limit, disallowing the additional Rs. 50 lakhs invested after 31.03.2009. The CIT(A) upheld this, but the ITAT allowed the full Rs. 1 crore deduction, following Mad HC precedent, noting the legislative intent and subsequent amendment clarifying the limit applies per financial year. The appeal was allowed in favor of the assessee. Case-Laws Income Tax Wed, 13 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274971