9911796707
TMI Blog2025 (2) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... eal:- "1.1 The order passed u/s. 250 on 21.03.2024 for A.Y.2014-15 by Addl/JCIT(A)-2, Lucknow upholding the additions/ disallowances of Rs. 14,06,878 is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the eccentric facts and evidence available with regard to the impugned additions. 1.3 The Ld. CIT(A) has grievously erred in law and on facts in not carrying out any inquiry with regard to the applicability of the provisions of Income tax Act and thereby violated the principle of natural justice. Therefore, the appellant shall be granted opportunity to produce additional evidences. 2.1 The Ld. CIT(A) has grievous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same should not be added as the income of the assessee under the head "income from house property". 4. In response, the assessee submitted that the company is engaged in construction of residential units and development activities, since the date of it's incorporation. The unsold inventories/units of the assessee company are carried forward as stock-in-trade of the assessee and the assessee has not shown unsold flats as "fixed assets" in the balance sheet. The assessee submitted that property which was held as stock-in-trade by the assessee, being a real estate developer for the purpose of it's business is not liable to be assessed as the "rental income" on notional basis under the head "income from house property". If the property is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y". 6. In appeal, Ld. CIT(A) dismissed the appeal of the assessee on account of non-appearance, with the following observations: "6.3 This appeal has been filed by the appellant claiming that the action of the Assessing Officer is not supported by facts and laws and that it is unjust. In such a situation, it is for the appellant to furnish submissions with relevant evidence(s), case laws, if any, to support the claim. The burden of proof is always on the person who makes the claim. In this case, it is the appellant who has made the claim by filing the appeal. Thus, in cases where a particular receipt is sought to be taxed as income, the initial onus is on the Assessing Officer to prove that it is taxable. Where, however, the assessee cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head "income from other sources" for the impugned year under consideration. It was submitted that in absence of any specific charging section for the impugned year under consideration to tax notional ALV on such unsold inventory, no income is liable to be added in the hands of the assessee on notional basis on such unsold inventory. Secondly, the Counsel for the assessee submitted that obtaining BU permission per se does not mean/imply that the unsold inventory is ready for possession. Even after obtaining BU permission, various proceedings / formalities need to be completed before such units become habitable. Accordingly, the assessee submitted that neither were the units let out by the assessee and nor were the units capable of being let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DCIT 156 taxmann.com 175 vide order dated 01.09.2023 has held that where assessee, a builder and developer had unsold flats in various building which were shown as closing stock and no rental income was earned, in view of the amendment to Section 23 effective from A.Y. 2018-19 providing that if an assessee holds house property as stock-in-trade and does not let out for the whole or part of the year, annual value will be considered NIL up to one year from Financial Year in which a completion certificate is obtained any addition made on account of notional ALV is liable to be deleted. 11. Accordingly, in view of the above discussion, we are of the considered view that the aforesaid amount is not liable to be added as income of the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
