https://www.taxtmi.com/caselaws?id=771680 ITAT Ahmedabad held that unsold flats held as stock-in-trade by a real estate developer cannot be taxed as deemed rental income under section 22. The tribunal ruled that 16 unsold flats consistently shown as inventory were part of circulating capital employed in business, not investment assets. Since the flats were retained for sale purposes, they satisfied business use criteria under section 22, making notional income taxation inapplicable. Additionally, disallowance of stamp duty, registration charges, and vakil fees was deleted as these were genuine business expenses. The appeal was decided in favor of the assessee. en-us Mon, 26 May 2025 00:00:00 +0530 Thu, 29 May 2025 08:41:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771680 ITAT Ahmedabad held that unsold flats held as stock-in-trade by a real estate developer cannot be taxed as deemed rental income under section 22. The tribunal ruled that 16 unsold flats consistently shown as inventory were part of circulating capital employed in business, not investment assets. Since the flats were retained for sale purposes, they satisfied business use criteria under section 22, making notional income taxation inapplicable. Additionally, disallowance of stamp duty, registration charges, and vakil fees was deleted as these were genuine business expenses. The appeal was decided in favor of the assessee. Case-Laws Income Tax Mon, 26 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771680