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No national Taxation on unsold flats of Builder : ITAT Pune
The ITAT bench of Pune has held that no addition could be made under Section 23(4) of Income Tax Act, 1961 on deemed rent on unsold flats declared as stock in trade. However, in the case of Commissioner of Income Tax Vs. Ansal Housing Finance And Leasing Co. Ltd. the Hon’ble Delhi High Court taking a contrary view has held that annual rental value on unsold flats built by assessee engaged in construction business is assessable as income from house property But Commissioner of Income Tax Vs. Vegetable Products Ltd. the Calcutta High Court in favour of the assessee and it is a well settled law that when two divergent views of non-jurisdictional High Courts are available and there is no decision on the issue from the Jurisdictional High Court, the view in favour of the assessee has to be adopted.
The copy of the order is as under:
1681211152-ITA No. 75 PUN 2023