9911796707
TMI Blog2024 (10) TMI 1571X X X X Extracts X X X X X X X X Extracts X X X X ..... AT PUNE] we hold that during the period under consideration deemed rent/notional rent on the annual letting value of flats/shops held as stock in trade cannot be calculated. Therefore, we direct the AO to delete the addition made on account of deemed rent/notional rent on the property held in closing stock as stock in trade. Thus, the ground of appeal raised by the assessee is allowed. - Shri R. K. Panda, Vice President And Shri Vinay Bhamore, Judicial Member For the Assessee : Shri Pramod S. Shingte For the Revenue : Shri Ramnath P. Murkunde ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 16.02.2024 passed by LD. CIT(A)/NFAC for the assessment year 2017-18. 2. The appellant has raised th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also submitted that regarding calculation of deemed rent on unsold stock in trade a new section 23(5) of the IT Act has been introduced w.e.f. assessment year 2018-19 only no such section was in existence during the relevant period under consideration. Being unsatisfied with the reply of the assessee, the Assessing Officer determined deemed rent of Rs. 15,06,808/- on unsold flats and deemed rent of Rs. 22,27,496/- was determined on unsold commercial property (shops) and gave relief of Rs. 4,19,832/- towards rent declared by the assessee himself. Accordingly, the Assessing Officer in the light of section 23(4) of the IT Act determined taxable deemed rent of Rs. 34,14,922/- and completed the assessment vide order dated 30.12.2019 by det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not intend to calculate any notional rent/deemed rent on the value of closing stock held as stock in trade. It was also submitted that section 23(4) of the IT Act talks about the property (i.e. house) and do not use word commercial property (i.e. shops) or stock in trade . It was also submitted that the property held as stock in trade was used for the purposes of business, therefore, section 23(4) does not apply. Ld. Counsel of the assessee further submitted that when the Hon ble High Court decided the case of CIT vs. Ansal Housing Finance Ltd, section 23(5) was not on statute book. Ld. Counsel of the assessee relied on following various decisions passed by jurisdictional Co-ordinate Bench of this Tribunal :- (i) Jayant Avinash Dave vs. DCI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmann.com 458 (Pune Trib.) order dated 30.10.2023, appeal of the assessee was allowed by observing as under :- 30. The only other ground which survives in the appeal of the Revenue is against the deletion of addition of Rs. 92,159/- made by the AO towards deemed rent on vacant property. The assessee was having a proprietorship concern by the name and style of M/s Aarushi Developers, which was engaged in the business of properties. The AO observed that the built up area of 550 sq.ft., which was part of stock in trade, was vacant throughout the year. He computed the deemed rent of such area at Rs. 93,559/-. The ld. CIT(A) deleted the addition by relying on the order dated 12.09.2018 passed by the Pune Bench of Tribunal in M/s Cosmopolis Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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