https://www.taxtmi.com/highlights?id=88864 ITAT resolved two key issues for A.Y. 2017-18 involving a real estate developer's tax treatment of unsold flats. The tribunal held that notional rental income cannot be attributed to unsold flats held as stock-in-trade under section 22. The flats, being part of circulating capital and inventory intended for sale, do not satisfy the condition of "property not used for business purposes". Additionally, stamp duty, registration, and legal fees were deemed legitimate business expenses. The tribunal deleted the Assessing Officer's income addition and disallowance, ruling comprehensively in favor of the assessee based on the statutory provisions, asset nature, and judicial precedents. en-us Thu, 29 May 2025 08:41:13 +0530 Thu, 29 May 2025 08:41:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88864 ITAT resolved two key issues for A.Y. 2017-18 involving a real estate developer's tax treatment of unsold flats. The tribunal held that notional rental income cannot be attributed to unsold flats held as stock-in-trade under section 22. The flats, being part of circulating capital and inventory intended for sale, do not satisfy the condition of "property not used for business purposes". Additionally, stamp duty, registration, and legal fees were deemed legitimate business expenses. The tribunal deleted the Assessing Officer's income addition and disallowance, ruling comprehensively in favor of the assessee based on the statutory provisions, asset nature, and judicial precedents. Highlights Income Tax Thu, 29 May 2025 08:41:13 +0530 https://www.taxtmi.com/highlights?id=88864