TaxTMI 
TaxTMI 
2018 (10) TMI 1500
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.... On the facts and in the circumstances of the case and in law, the Commissioner of Income Tax (Appeals) has grossly erred in law as well as on facts in confirming the action of the Assessing Officer (AO) in charging notional income as income from house properties in respect of unsold units (both residential / commercial), which were held by the appellant as its stock in trade. Without prejudice to the ground taken above, the CIT(A) has grossly erred in upholding the ALV of the unsold units (both residential / commercial) held by the appellant as stock in trade at Rs. 1,22,32,745/-, the estimation so made is highly exorbitant. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax, Central Cir....
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....s added to the income of the assessee. The stand of Ld. AO, upon confirmation by first appellate authority, is under appeal before us. 3. The Ld. Auhtorized Representative for assessee, Shri J.P.Bairagra, at the outset, drew our attention to the recent decision of the Tribunal rendered in the case of assessee's sister concern to submit that the issue has been delved upon at length and the same has been settled in assessee's favor. Per Contra, Ld. Departmental Representative [DR], Shri Manoj Kumar Singh, submitted that the issue stood squarely covered against assessee's favor by the cited decision of Hon'ble Delhi High Court and therefore, the same should be followed. 4.1 We have carefully heard the rival contentions and perused rel....
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....he AO relied upon the judgment of the Hon'ble Delhi High Court in CIT vs. Ansal Hsg. Finance & Leasing Co. Ltd., (ITA No.18/1999 dtd. 31/10/2012) and computed deemed income from house property by estimating @8.5% of cost of construction and after allowing the deductions of 30%, computed the income. 4.2. Aggrieved by the order of the AO, the assessee filed appeal before the ld. CIT(A). We find that the Ld. CIT(A), relying on the decision in Shyam Burlap Co. Ltd. vs. CIT, 61 taxmann.com 121 (Calcutta High Court), M/s. Chennai Properties and Investment Ltd. (supra) and the order of the Tribunal in C.R. Development Pvt. Ltd. (ITA No.4277/Mum/2012 dtd. 13/05/2016), deleted the addition as per para 2.460 of his appellate order dtd.01/02/....
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....s held as stockin- trade and the property or any part of the property is not let during the whole or any part of the previous year, the annual value of such property or part of the property, for the period up to one year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to nil." Thus, in order to give relief to Real Estate Developers, section 23 has been amended w.e.f. AY 2018-19 (FY 2017-18). By this amendment, it is provided that if the assessee is holding any house property as his stock-in-trade which is not let out for the whole or part of the year, the annual value of such property will be considered as Nil for a pe....