2022 (6) TMI 1469

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....ear (A.Y.) 2017-18. 2. The only interconnected issue raised by the assessee is that the learned Principal CIT erred in holding the assessment framed under section 143(3) of the Act as erroneous insofar prejudicial to the interest of Revenue. 3. The brief facts are that the assessee is a partnership firm and engaged in the business of Real Estate. The Ld. PCIT, on examination of the assessment records, found that the assessee has closing stock of the properties as on 31 March 2017 at Rs. 11,66,89,586.00. Undisputedly, the BU permission was received by the assessee in the year under consideration. Accordingly the Ld. PCIT was of the view that the assessee was liable to declare the income under the head income from house property on noti....

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....hargeable to tax under the provisions of section 22 and 23 of the Act on notional basis. The learned PCIT has also referred the provisions of explanation 2 of section 263 of the Act and held the order of the AO as erroneous insofar prejudicial to the interest of Revenue. 5. Being aggrieved by the order of the learned PCIT, the assessee is in appeal before us. 6. The learned AR before us filed a paper book running from pages 1 to 34 and contended that the building completion certificate was issued by the competent authority dated 15 October 2016 and therefore the provisions of section 23(5) will be applicable after one year from the end of the financial year in which the certificate of completion of construction was obtained. According....

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....velopers, it is proposed to amend the said section so as to provide that where the house property consisting of any building and land appurtenant thereto is held as stock in 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 upto 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 be nil. 8.3 This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years. 8.4 A plain reading of the above provisions makes....