The assessee, a company engaged in development/construction and ...

Property developer's tax disputes: Rental income exclusion, litigation properties, self-occupied flats, windmill expenses deduction.

Case Laws     Income Tax

August 17, 2024

The assessee, a company engaged in development/construction and sale of flats and plots, had classified its properties into four categories: flats open for sale, let-out flats, self-occupied flats, and flats under litigation. The Tribunal upheld the exclusion of let-out properties from Annual Lettable Value (ALV) calculation, following its earlier orders. For properties under litigation, the issue was restored to the Assessing Officer to examine evidence for non-inclusion of ALV. For self-occupied properties, the Tribunal upheld the CIT(A)'s decision to exclude ALV, as per Section 22 of the Act. Regarding windmill income, the Tribunal directed the Assessing Officer to allow deduction for expenses incurred during the first three months, corresponding to the income taxed for that period. The Tribunal upheld the CIT(A)'s findings on slump sale and revenue clause. On basement ALV, the Tribunal upheld the CIT(A)'s estimation of 50% ALV due to restricted usage. The issue of disallowance of employees' PF/ESI contribution was restored to the Assessing Officer for fresh adjudication. The Tribunal allowed the revenue's ground on addition u/s 43CA, as the assessee did not contest it.

View Source