TaxTMI 
TaxTMI 
2023 (4) TMI 312
X X X X Extracts X X X X
X X X X Extracts X X X X
....account of deemed rent u/s. 23(4) of the Act. 3. We note that the assessee is a company engaged in the business of property development. During the course of assessment proceedings, the assessee was asked to explain as to why the deemed rent in respect of unsold units should not be brought to tax under the head "Income from house property". It was explained that the 15 unsold flats cumulatively admeasuring 17341 sq. ft. were not sold during the year under consideration and they were treated as closing stock. Further, it was contended that the said 15 unsold flats were not let out and no deemed rent u/s. 23(4) could be levied under the head "Income from house property". The AO opined that the assessee was not in occupation of the said 15 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....both the parties and perused the material available on record. We note that the Hon'ble Bombay High Court in the case of Gundecha Builders (supra) vide its order dated 31-07-2018 for A.Y. 2008- 09 considered question of law which are reproduced in para 2 of the said decision. The relevant question of law in para 2(i) is reproduced here-inbelow for ready reference : "(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in treating the income received on letting out as house property income?" 7. On plain reading of the said question of law, we note that whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in treating the income received on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in the case of Gundecha Builders (supra) are different from the facts of the present case in hand. Thus, we reject the arguments of ld. DR of applicability of observation of Hon'ble High Court of Bombay in the case of Gundecha Builders (supra). On similar issue and same identical facts, this Tribunal in the case of Sai Spacecon India Pvt. Ltd. in ITA No. 2824/PUN/2017 held no addition on account of deemed rent on unsold flats could be made in the hands of the assessee. The relevant portion of the same are as under for ready reference : "3. Heard both the parties and perused the material available on record. We note that the assessee is a Private Limited Company engaged in the business of Promoter, Developer, Builder and Power Gene....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ccupied by the assessee as an owner. There is no material evidence to show before us that the assessee is not occupied the said unsold 37 flats. The second condition is that any business or profession should be carried on by the assessee. We note that the assessee filed return showing income from such business and also engaged in the business of property development. The third condition is that the occupation of the property should be for the purpose of business or profession wherein the assessee before us shown the said 37 unsold flats as stock in trade. The last condition is that profits of such business or profession should be chargeable to income-tax. In the present case that there is no dispute that the profits of the business of const....