NOTIONAL RENT u/S 22 AND 23 IN CASE OF RESIDENTIAL UNITS HELD IN STOCK IN TRADE BY BUILDERS

A partnership firm engaged in to real estate and construction activity. During the course of assessment proceedings, the Ld. Officer had raised contention of calculating notional rent U/s 22 and 23 of the Income Tax Act, 1961 for AY 2017-18 on 6 unsold completed units held as stock in trade of the business, for which BU permission was already received 1 year ago. The Ld. Officer computed notional rent and made addition under the head “Income from House Property”. Is the Officer right in making such addition, given the facts that the partnership firm (builder) was holding such unsold unit…

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