9911796707
TMI Blog2022 (6) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... e Property income particularly in case of deemed let out property. This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years. A plain reading of the above provisions makes it clear that the amendment for charging the tax on the notional rent with respect to the properties held as stock in trade was applicable from the assessment year 2018-19 and subsequent assessment year. As such, the amended provision is not applicable for the year under consideration. Thus the question of calculating the rental income with respect to the units of the properties held as stock in trade does not arise. Thus we hold that there was no error in the order of the AO framed u/s 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is a partnership firm and engaged in the business of Real Estate. The Ld. PCIT, on examination of the assessment records, found that the assessee has closing stock of the properties as on 31 March 2017 at Rs. 11,66,89,586.00. Undisputedly, the BU permission was received by the assessee in the year under consideration. Accordingly the Ld. PCIT was of the view that the assessee was liable to declare the income under the head income from house property on notional basis under section 22 read with section 23 of the Act but the assessee has not done so. According to the Ld. PCIT, this fact was not verified by the AO during the assessment proceedings. Accordingly, the Ld.PCIT initiated the proceedings under section 263 of the Act vide show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the learned PCIT, the assessee is in appeal before us. 6. The learned AR before us filed a paper book running from pages 1 to 34 and contended that the building completion certificate was issued by the competent authority dated 15 October 2016 and therefore the provisions of section 23(5) will be applicable after one year from the end of the financial year in which the certificate of completion of construction was obtained. Accordingly, the notional rental income is not chargeable to tax in pursuance to the provisions of section 22 read with section 23 with respect to the properties held as stock in trade for the year under consideration. 7. On the contrary, the learned DR before us vehemently supported the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property, for the period upto 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. 8.3 This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years. 8.4 A plain reading of the above provisions makes it clear that the amendment for charging the tax on the notional rent with respect to the properties held as stock in trade was applicable from the assessment year 2018-19 and subsequent assessment year. As such, the amended provision is not applicable for the year under consideration. Thus the question of calculating the rental income wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
