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TMI Blog2022 (12) TMI 1539X X X X Extracts X X X X X X X X Extracts X X X X ..... out w.e.f. 01-04-2018. Thus, this provision manifestly does not apply to the assessment year under consideration. Tribunal considered this aspect in several cases including the one taken note of by the ld. CIT(A), namely, Cosmospolis Construction [ 2018 (9) TMI 1621 - ITAT PUNE] and held that no income from house property can result in respect of unsold flats held by a builder as stock in trade at the year-end. While disposing off the above referred case, the Tribunal observed that income from unsold flats could be considered only under the head Profits and Gains from business or profession and not Income from House Property . CIT(A) considered these observations of the Tribunal qua the inclusion of income, if any, under the head Business I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the year, had total 12 unsold units (10 flats 2 shops) in the project named as Malpani Green , which was fully completed on 14.03.2012. The Assessing Officer (AO) observed that the assessee did not offer deemed rental income on these units. Considering the provisions of section 23 of the Income-tax Act, 1961 (hereinafter referred to as the Act ), he determined the annual letting value [after deduction of 30% u/s 24(a)] at Rs.9,83,339 and added the same to the total income of the assessee. The ld. CIT(A) affirmed the addition. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. Having heard the rival submissions and perused the relevant material on record, it is seen that the assessment year under consideration i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered 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, I am of the considered opinion that the addition of Rs.9,83,339 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. Order pronounced in the Open Court on 09th December, 2022. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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