2019 (3) TMI 2007

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....connected to the above referred issue that alternatively ALV is to be computed by taking 6% as the average rate of investment as against 8% of average rate of investment adopted by the assessing officer. 2. The fact in brief is that assessee has filed return of income on 29th Sep, 2013. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 4th Sep, 2014. The nature of business of the assesse is builder and developer of property. During the course of assessment on verification of the details filed, the assessing officer noticed that assessee has shown in the balance sheet unsold finished property having total square ft. of 174109 and value of this property was shown at Rs. 33,34,51,476/-. The asse....

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....ppellate proceedings. The ld. counsel contended that income earned by the assesse has been declared under the head income from business or profession and as per the memorandum of association and article of association, the main object of the assessee is to carry on the business as promoter and developer of various kinds of properties. The unsold properties are shown as closing stock. He has vehemently contended that the aforesaid property was held as stock in trade and any income derived from stock shall be taxable as business income. The ld. counsel has also placed reliance on the following judicial pronouncements:- (i) Chennai Properties and Investment Ltd. vs. CIT 373 ITR 673 (SC) (ii) CIT vs. Neha Builders 296 ITR 661 (Guj) (iii) ....