Property was purchased by assessee, engaged in real estate business, for purpose of resale. Same was lying vacant under head ‘inventory’ and meanwhile used for purpose of business. Tribunal held that FMV of property used by appellant for business purpose could not be determined under section 23(1) and addition made by determining annual value was not in accordance with law (AY. 2015-16)
Shivsagar Builders (P.) Ltd. v. ACIT (2020) 185 ITD 684 (Delhi)(Trib.)
S. 23 : Income from house property-Annual value-Stock in trade-Fair market value-Used for the purpose of business-Addition cannot be made on the basis of notional annual value.[S. 22]