The assessee is \u00a0a builder and developer. During the course of assessment proceedings it was found that the assessee had on hand unsold flats and shops. The AO r computed the notional rental on such stock-in-trade under the head \u201cIncome from house property\u201d at Rs. 5,54,400. The CIT(A) upheld the contention of assessee in taxing the income as income from business. On appeal the Tribunal held that \u00a0no rental income could be computed when the flats were held as stock-in-trade. The Finance Act, 2017 with effect from April 1, 2018 has inserted sub-section (5) of section\u00a023\u00a0which has the effect of providing that from the assessment year 2018-19, stock-in-trade of buildings, etc., shall be liable to be considered for computation of annual value under the head \u201cIncome from house property\u201d after two years from the end of the financial year in which the certificate of completion of construction of the property is obtained. As the assessment year was 2015-16, the amended S. \u00a023\u00a0would not apply.(AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 22 : Income from house property-Business income-Unsold flats-Stock in trade-No rental income to be computed when flats held as stock-in-trade. [S. 23(5), 28(i)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10920","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Q8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10920"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10920\/revisions"}],"predecessor-version":[{"id":10921,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10920\/revisions\/10921"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}