Tribunal held that, the annual letting value (ALV) of unsold units of properties lying as stock in trade is not assessable as income under the head “Income from house property”. The deeming provision of S. 23 cannot be extended beyond its ambit so as to cover the heads of income to which it does not operate. Taxing hypothetical income, which is otherwise not sanctioned by any provision under Chapter IV-D, cannot be permitted. (ITA No.1914/PUN/2018, dt. 19.02.2019)(AY. 2015-16)
Shree Balaji Ventures v. ITO (Trib)(Pune), www.itatonline.org
S. 23 : Income from house property–Annual letting value–Stock in trade-The annual letting value (ALV) of unsold units of properties lying as stock in trade is not assessable as income under the head income from house property. [S. 5, 22, 23(4)]