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TMI Blog2022 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... old units u/s 22 - HELD THAT:- No change in facts and law subsequent to the decision of Kumar Properties and Real Estate [ 2021 (4) TMI 1163 - ITAT PUNE] was brought to our notice. Hence, we have no reason to take a different view from the view taken by the Coordinate Bench of this Tribunal in the case of Kumar Properties and Real Estate (P.) Ltd. (supra). Therefore, we are of considered opinion that the Assessing Officer was not justified to assess the annual value of unsold flats for the year under consideration. Accordingly, we direct the Assessing Officer to delete the addition as made by him in the assessment order. Thus, the issue raised in the grounds of appeal stands allowed. - ITA No. 1075/PUN/2018 50/PUN/2019 30/PUN/2019 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 22 of the Act. 3] Without prejudice to the above grounds, the assessee submits that assuming without admitting that the income of such unsold units was taxable as income from house property u/s 22, it is submitted that the unsold units were vacant for the entire year and accordingly, the income thereon was to be considered at Rs. NIL in view of the provisions of Section 23(1) (c) and hence, the entire addition made by the learned CIT(A) may kindly be deleted. 4] Without prejudice to the above grounds, the assessee submits that the net annual rate able value adopted by the A.O. is on an adhoc basis and the same should be substituted by the municipal rateable value determined for the various units by the local authorities. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal was called on, none appeared on behalf of the assessee despite due service of notice of hearing, therefore, after hearing the ld. Sr. DR, we proceed to dispose of this appeal. 9. The issue in the present appeal relates to the assessability of notional income from the unsold flats held as stock in trade in the case of the assessee whose business is construction and sale of residential properties. The undisputed fact of the case is that the assessee has unsold flats which are held as stock in trade . Then the question that arises for consideration whether the annual value of such unsold flats can be assessed u/s 23 of the Act. There is no doubt that the Hon ble Delhi High Court in the case of Ansal Housing Finance Leasing C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he absence of any decision from the Jurisdictional High Court, a view in favour of the assessee has taken by holding as under :- 11. The authorities below have canvassed a view that the annual letting value of flats/bungalows is income chargeable to tax as 'Income from house property' by relying on Ansal Housing Finance and Leasing Company Ltd. (supra). There is no doubt that the Hon'ble Delhi High Court in the said case has held that Annual letting value of unsold flats at the year end is chargeable to tax under the head 'Income from house property'. At the same time, we find that the Hon'ble Gujarat High Court in CIT v. Neha Builders (P.) Ltd . [2007] 164 Taxman 342/[2008] 296 ITR 661 has held that income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k-in-trade which is not let out during the year, its annual value for a period of one year, which was later enhanced by the Finance Act, 2019 to two years, from the end of the financial year in which the completion certificate is received, shall be taken as Nil. 11. The reliance placed by the ld. CIT(A) on the decision of the Hon ble Supreme Court in the case of Raj Dadarkar and Associates (supra) is misplaced, inasmuch as, the issue involved in that case is the assessability of income under house property or business income . 12. No change in facts and law subsequent to the decision of the Co-ordinate Bench of this Tribunal in Kumar Properties and Real Estate (P.) Ltd. (supra) was brought to our notice. Hence, we have no reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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