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TMI Blog2022 (7) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is a prospective amendment. The effect of this amendment is that stock-in-trade of buildings etc. shall be considered for computation of annual value under the head 'Income from house property' after one/two years from the end of the financial year in which the certificate of completion of construction of the property is obtained on and from the A.Y. 2018-19. Instantly, with the assessment year 2013-14. As such, the amendment cannot apply to the year under consideration. In the absence of the applicability of such an amendment, no rental income can be said to have accrued to the assessee from unsold flats available as stock-in-trade under the head `Income from House property . In that view of the matter, the view point of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A)-8, Pune in relation to the assessment year 2013-14. 2. The additional ground taken by the assessee was not pressed by the ld. AR. The same is, therefore, dismissed as not pressed. The only issue raised in the appeal memo is against the confirmation of addition of Rs.14,52,000 as `Business income , being, notional rent on unsold flats held as stock-in-trade . 3. Tersely stated, the facts of the case are that the assessee has been a builder and developer during the relevant period. During the course of assessment proceedings, the Assessing Officer (AO) observed that the assessee had certain units of flats lying unsold at the end of the year. It was opined that rental value of such unsold flat units was liable to be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r part of the property, for the period up to 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. 6. A close scrutiny of the provision introduced by the Finance Act, 2017, transpires that where a property is held as stock-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. The amendment has been carried out w.e.f. 1.4.2018 and the Memorandum explaining the provisions of the Finance Bill, 2017 clearly pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision under the Chapter IV-D of the Act which can envelope the above amount within its fold. Admittedly, the assessee did not earn any actual rental income from the letting out of the 11 units. Ex conseqeunti, taxing hypothetical income of rent, which is otherwise not covered under any provision of Chapter IV-D of the Act, cannot be allowed. The ld. DR also failed to point out any specific provision under Chapter IV-D of the Act for taxing such hypothetical income. In view of the foregoing discussion, it is held that the ld. CIT(A) was not justified in taxing Rs.14.52 lakhs as Business income . The impugned order is set aside and the addition is directed to be deleted. 8. In the result, the appeal is allowed. Order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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