Dismissing the appeal of the revenue the Tribunal held that , unsold flats which are held by a builder as stock in trade cannot be brought to tax under the head ‘income from house property’. They are only assessable as business profits when sold. (Followed Runwal Constructions v. ACIT ITA No 5408/5409 /Mum/2016 dt. 22-02-2018) (ITANO.6037/Mum/2016, dt. 27.06.2018)( AY. 2012-13)
ITO v. Arihant Estate Pvt. Ltd. (Mum)(Trib), www.itatonline. Org
S. 23 : Income from house property – Annual value – Stock in trade –Unsold flats which are held by a builder as stock in trade cannot be brought to tax under the head ‘income from house property’. They are only assessable as business profits when sold. [ S.22 ]