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TMI Blog2022 (1) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal qua the inclusion of income, if any, under the head Business Income and directed to include deemed annual value as business income in the impugned order. He however, did not appreciate that the Tribunal nowhere held for the inclusion of the deemed rental income under the head Profits and Gains from business or profession . It simply directed that income, if any, from unsold flats held as stock in trade can be considered only as Business Income . In the ultimate analysis, the Tribunal eventually deleted the addition. It is but natural that if a particular income is to be taxed under a specific head, the computational mechanism governing that head only can come into play. There is no provision under the head Profits a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent received by the assessee from other 7 properties, the AO computed monthly rental income at ₹ 3,80,700/- @ ₹ 456/- per sq.ft. Total rental income for the year anent to such 7 units was calculated at ₹ 12.18 lakh. After allowing the standard deduction towards repairs at ₹ 3.65 lakh, the AO added a sum of ₹ 8,52,902/- to the assessee's total income under the head Income from House Property . The ld. CIT(A), relying on certain Tribunal orders, held that such income was to be taxed as Business Income . Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard both the sides through Virtual Court and perused the relevant material on record. The assessment year under cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stock in trade can be considered only as Business Income . In the ultimate analysis, the Tribunal eventually deleted the addition. It is but natural that if a particular income is to be taxed under a specific head, the computational mechanism governing that head only can come into play. There is no provision under the head Profits and Gains from business or profession which deems the rental income from unsold flats held as stock as 'Business income'. Considering the above factual and legal position, we are of the considered opinion that the addition of ₹ 8,52,902/- made by the AO and as sustained in the first appeal, is not called for. The same is directed to be deleted. 5. In the result, the appeal is allowed. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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