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TMI Blog2025 (2) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... notional value of unsold stock/inventory as income under the head income from other sources. We note that sub-section (5) to Section 23 of the Act was introduced w.e.f. 01.04.2018 to tax income from property held as stock-in-trade. Accordingly, for the impugned year under consideration, there was no specific charging section which could subject this income in the hands of the assessee. As in Ahmedabad Tribunal in the case Takshshila Realties [2023 (9) TMI 219 - ITAT AHMEDABAD] 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 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 grievously erred in law and or on facts in upholding the disallowance of Rs. 24,106 under section 14A. 2.2 That the Ld. CIT(A) ought not to have upheld disallowance of Rs. 24,106 under section 14A. 2.3 The Ld. CIT(A) has grievously erred in law and or on facts in upholding the addition of Rs. 13,82,772 being rental income under House property. 2.4 That the Ld. CIT(A) ought not to have upheld addition of Rs. 13,82,772 being rental income under House property. 3.1 Without prejudice to the above and in the alternative, the appellant begs to submit that the ALV estimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 shown as stock-in-trade, then the said property would partake the charcter of "stock" of the assessee and income derived from stock would be income from "business" and not "income from house property". Further, the assessee submitted that the unsold units have also not been ever let out by the assessee and therefore, notional income cannot be computed in the hands of the assessee. 5. However, the Assessing Officer rejected the arguments of the assessee and held that as per Section 22 of the Act, the only condition required to tax the property consisting of building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 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 claims exemption, the burden is on the assessee to prove it to be exempt. In his petition assessee has raised 2 different grounds upon which Ground NO-1 and 2 explains about unsold flats on rent and made disallowance under section 14A Amounting Rs. 24,106/-. Share in partnership Firm. Core issue of ground No 1 to 2 is already discussed in this order as in lack of any fallow up made by applicant to discharge his duty to respond against burden of proof his appeal can't be accepted. From the conduct of the appellant as per the facts noted above, it is clear that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 out and hence, notional ALV on such unsold units (which were incapable of being let out), could not be added as income in the hands of the assessee. 9. In response, Ld. D.R. placed reliance on the observations made by the Assessing Officer and CIT(A) in their respective orders. 10. On going through the facts of the instant case, we are of the considered view that for the impugned year under consideration there was no spedific charging section which could subject notional value of unsold stock/inventory as income under the head income from other sources. We note t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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