2019 (1) TMI 1879

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....t 'the Act'). 2. Although assessee has raised multiple Grounds of appeal, but in sum and substance the solitary grievance is against an addition of Rs. 18,50,176/- sustained by the CIT(A) under the head 'Income from House Property' representing Annual Letting Value of unsold flat. 3. Briefly put, the relevant facts are that the appellant is an individual who is, inter-alia, engaged in the business of real estate developers and builders under the name and style of 'Godshalwar Project Consultants & Developers'. During the year under consideration, the project undertaken by the assessee, namely, Bhola Bhagwan Project was completed. It was noted by the Assessing Officer that flats constructed by the assessee in the said project were sold ....

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....;ble Bombay High Court in the case of CIT vs Sane & Doshi Enterprises, 377 ITR 0165 (Bom.) wherein the issues were altogether different. 5. On the other hand, the ld. DR has defended the decision of the lower authorities by placing reliance on the same. 6. We have carefully considered the rival submissions. The short point involved in this appeal is the validity of addition sustained by the CIT(A) on account of notional ALV of the unsold flat, which is held by the assessee as stock-in-trade. Factually speaking, it is not in dispute that the flat in question is not yielding any rental income to the assessee, as it has not been let-out. It is also not in dispute that the project in question has been completed during the year under consi....

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....ns (supra), the Bench noted the judgment of the Hon'ble Gujarat High Court in the case of CIT vs Neha Builders Pvt. Ltd., 296 ITR 661 (Guj.) as also the judgment of the Hon'ble Delhi High Court in the case of Ansal Housing Finance & Leasing Co. Ltd., 354 ITR 180 (Delhi) and finally observed as under :- "10. In the case on hand before us it is an undisputed fact that both assessees have treated the unsold flats as stock in trade in the books of account and the flats sold by them were assessed under the head 'income from business'. Thus, respectfully following the above said decisions we hold that the unsold flats which are stock in trade when they were sold they are assessable under the head 'income from business' when they ....