2018 (6) TMI 1781

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....ent Year 2012-13. The assessee has raised the following grounds of appeal: 1. The learned Commissioner of Income Tax erred in law & on facts in confirming order of the Assessing Officer in adding the ALV of the unsold units which constitutes stock in trade of the appellant as "Income from House Property" u/s 22 of the Income Tax Act, 1961. 2. The appellant prays that the order passed u/s. 143(3) adding sum of Rs. 3,66,23,328/- as ALV of the unsold units under the head "Income from House Property" is bad in law & should be quashed. 2. Brief facts and of the case are that the assessee is a Private Limited Company engaged in the business of Real Estate Development, filed its return of income for Assessment Year 2012-1....

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....nstructions vs. ACIT (ITA No. 5408/M/2016 dated 22.02.2018), M/s C.R. Developments Pvt. Ltd. vs. JCIT (ITA No. 4277/M/2012 dated 13.05.2015 ACIT vs. M/s Classique Associates in ITA No. 4575/Mum/2013 dated 29.06.2015. On the other hand, the ld. DR for the Revenue supported the order of authorities below. The ld. DR for the Revenue further submits that the Assessing Officer on the basis of decision of Hon'ble Delhi High Court in Ansal Housing Financing & Leasing Co. Ltd. (354 ITR 180) held that assessee is liable to be taxed on the ALV of unsold flat owned by it under the head "Income from House Property". On our specific query from both the ld. representative submits that there is no decision of jurisdictional High Court on this issue. Both ....

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....e sold, they are assessable under the head "Income from Business" and therefore, the Assessing Officer is not correct in bringing those units to tax on the basis of notional ALV under the head "Income from House Property". 6. We are conscious of the fact that the decision of Hon'ble Delhi High Court in Ansal Housing Financing & Leasing Co. Ltd. (supra) is against the assessee. The Hon'ble Supreme Court in case of CIT vs. Vegetable Products Ltd. (88 ITR 92) held that wherein two reasonable construction to tax provision are possible that construction which favours assessee must be adopted. Therefore, with utmost regard to the decision of Delhi High Court in case in Ansal Housing Financing & Leasing Co. Ltd. (supra), we are accepting t....