AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 826
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....ng grounds of appeal have been raised by the assessee: "1. The ld. CIT(A) has erred in not following the order of the jurisdictional tribunal on the same issue for another year. 2. The ld. CIT(A) has erred in dismissing the appeal, but in order she has mentioned to treat business income, however, there is no deeming provision for rest income from the business. 3. The learned Income-tax Officer was not justifying in making the addition of Rs. 15,62,400/- on account of House Property and also the Ld. CIT(A) has erred in confirming the same. 4. The appellant reserves the right to add, alter, amend, or withdraw any grounds of appeal." 2. Rival submissions of both the parties have been heard and record peru....
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....rely covered in favour of assessee by the decision of Tribunal in assessee's own case for A.Y. 2010-11 and A.Y. 2011-12. In the case of A.Y. 2010-11, this Bench has followed the order passed in A.Y. 2011-12 dated 18/12/2018 in ITA No. 2237/Ahd/2015. Relevant part of subsequent decision dated 21/10/2021 in ITA No. 160/Srt/2018 is extracted below: "6. We have considered the rival submission of the parties and have gone through the orders of Lower Authorities. We find that a similar set of facts in assessee's own case for the A.Y. 2011-12, the Co-ordinate Bench of Tribunal by considering the decision of Jurisdictional High Court in Neha Builders Pvt. Ltd.(supra) passed the following order: "7. We have heard the rival submissi....
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....n-trade', then the said property would become or partake the character of the stock, and any income derived from the stock, would be 'income' from the business, and not income from the property. If the business of the assessee is to construct the property and sell it or to construct and let out the same, then that would be the 'business' and the business stocks, which may include movable and immovable, would be taken to be 'stock-intrade', otherwise, it is to be seen that there was distinction between the 'income from property." 9. From the statement of the assessee, it would clearly appear that it was treating the property as 'stock-in-trade'. Not only this, it will also be clear from the records that, except for the ground floor,....
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....9;ble Delhi High Court in the case of Ansal Housing Finance & Leasing Co. Ltd., 354 ITR 180 (Delhi) in support of the proposition that even in respect of unsold flats by the developer is liable to be taxed as income from house property. 5. We have considered rival contentions and perused the record. The issue under consideration has been restored by the CIT(A) to the file of AO to compute the annual value. Recently the Hon'ble Supreme Court in the case of M/s Chennai Properties & Investments Ltd. Vs. CIT, reported in (2015) 42 SCD 651, vide judgment dated 9-4-2015 has held that where assessee company engaged in the activity of letting out properties and the rental income received was shown as business income, the action of AO t....
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.... on hand before us it is an undisputed fact that both assessee 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 are sold and therefore the AO is not correct in bringing to tax notional annual letting value in respect of those unsold flats under the head 'income from house property.' Thus, we direct the AO to delete the addition made under Section 23 of the Act as income from house property. 11. In the result, the appeals filed by the ass....