Builder not liable to pay Deemed Rent on Unsold Flats as per ITAT order

Income Tax Appellate Tribunal (ITAT), Pune bench has held that since the unsold flats amount to stock-in-trade in the hands of the builder, no deemed rent can be derived from the same under the head “income from house property.” The assessee is in the business of Civil Engineers, Builders and Developers. The assessee, during the relevant year, had 32 unsold flats/shops and no rental income was derived by the assessee from such properties.
Tribunal concluded the matter in favour of the assessee by holding that no notional annual rental value on unsold flats held in stock-in-trade can be made in assessee’s hands.

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