The assessee, engaged in the business of real estate development, held unsold flats as stock-in-trade. The Assessing Officer computed the annual letting value by estimating notional rent at 8.5% of the cost of construction, which was partly sustained by the CIT(A). The Tribunal held that section 23(5), applicable from A.Y. 2018-19, was attracted in respect of property held as stock-in-trade; however, the estimation of annual letting value at 8.5% of the cost of construction was not sustainable. Following the decision of the jurisdictional High Court in CIT v. Tip Top Typography (2014) 368 ITR 330 (Bom)( HC) .The Tribunal held that the annual letting value should be determined with reference to the municipal rateable value. The matter was remitted to the Assessing Officer to ascertain the municipal rateable value and recompute the addition after giving the assessee an opportunity to furnish the relevant details. The assessee’s appeal was allowed for statistical purposes. (AY 2018-19 ,  2020-21) (ITA Nos. 5603, 5604 and 6204/Mum/2025 and ITA No. 5605/Mum/2025, dt. 24-08-2026)