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TMI Blog2021 (10) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 6 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 construction by the assessee are chargeable to income-tax. Therefore, in our view that the unsold 6 flats are occupied by the assessee are as owner; business of construction is carried on by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 2,49,200/- to the total income of the assessee. The CIT(A) confirmed the same. 4. Heard both the parties and perused the material available on record. During the course of assessment proceedings, we note that the assessee is holding stock of 6 flats which are completed and the details of which are reflected in Para No. 5 of the assessment order. The AO asked the assessee to explain as to why deemed rent in respect of said 6 flats should not be charged to tax under the provisions of section 22 of the Act. The assessee explained vide its submissions dated 09-03-2016, we note that the main contention of ld. AR is that the unsold flats forms part of stock in trade and there is no intention for the assessee to let out the said unso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the occupation of the property should be for the purpose of business or profession wherein the assessee before us shown the said 6 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 construction by the assessee are chargeable to income-tax. Therefore, in our view that the unsold 6 flats are occupied by the assessee are as owner; business of construction is carried on by the assessee; the occupation of the flats is for the purpose of business; and profits of such business are chargeable to Income-tax. Thus, in our opinion, all the four conditions provided in exclusion claus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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