Annual Letting Value Of Unsold Flats Held As Stock In Trade Cannot Be Considered For Addition U/s 22 I-T Act: Mumbai ITAT
1 year, 1 month ago

Annual Letting Value Of Unsold Flats Held As Stock In Trade Cannot Be Considered For Addition U/s 22 I-T Act: Mumbai ITAT

Live Law  

While setting aside the order of CIT, the Mumbai ITAT directed the AO to delete the addition of annual letting out value of the unsold flat u/s 22 of Income Tax Act, 1961. The Bench comprising Pavan Kumar Gadale and Prashant Maharishi observed that “the annual value of unsold flats held as stock in trade has to considered as per the amendment in the finance Act 2017 under section 23 of the Act is applicable from A.Y 2018-19 and the present case is A.Y. The assessee submitted the contention but the AO was not satisfied with the explanations and dealt on the provisions u/s 22 and U/sec 23 and computed the Annual let out value of flats disclosed under stock in trade and allowed deduction u/s 24 @ 30% and the balance amount was taxed under income from house property. 4598/M/2019, the Bench reiterated that “income derived from the property would always be termed as 'income' from the property, but if the property is used as 'stock-in-trade', then the said property would become or partake the character of the stock, and any income derived from the stock, would be 'income' from the business, and not income from the property.” The Bench stated that the issue is squarely covered in favour of the assessee and, hence, the order of the CIT upholding the addition made by AO estimating the ALV in respect of unsold flats cannot be sustained.

Property Income Case Stock Act Bench Flats Itat Assessee Ita Cit House Property Unsold Flats Ita No  mumbai  value  itat  income  order  trade  property  ao  bench  considered  case  held  act  flats  unsold  assessee  stock  letting

History of this topic

ITAT Cannot Decide On Grounds Not Addressed By Commissioner Of Income Tax (Appeals): Delhi High Court
2 months, 1 week ago

ITAT Cannot Decide On Grounds Not Addressed By Commissioner Of Income Tax (Appeals): Delhi High Court

Live Law  

The Delhi High Court recently said aside an order passed by the Income Tax Appellate Tribunal, deciding grounds that did not arise from the impugned order passed by the Commissioner of Income Tax. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The Assessee's challenge to the addition of ₹4,30,00,000/- under Section 68 of …

ITAT Weekly Round-Up: 11 To 17 August 2024
7 months, 1 week ago

ITAT Weekly Round-Up: 11 To 17 August 2024

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ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust Case Title: Legal Initiative For Forest And Environment Versus PCIT The Delhi Bench of Income Tax Appellate Tribunal has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. ITAT Allows …

ITAT Weekly Round-Up: 14 To 20 July 2024
8 months, 1 week ago

ITAT Weekly Round-Up: 14 To 20 July 2024

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Final Assessment Passed Within Two Days Of Issuing Intimation, Violation Of 143 IT Act : Mumbai ITAT Case Title: Add More Real Estate Developers LLP verses The Asst. Loans Brought Forwarded Can't Form Basis For Addition In Current Year if Genuineness Is Established: Mumbai ITAT Case Title: Arun Babulal Shah verses CIT Appeal NFAC Finding that the genuineness of loan …

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income
10 months, 3 weeks ago

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income

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Noting that neither the Assessing Officer nor the CIT have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income. Accordingly, the …

Assessee Has Not Benefited From Round-Tripping Of Share Transactions; Mumbai ITAT Deletes Addition U/s 68
10 months, 4 weeks ago

Assessee Has Not Benefited From Round-Tripping Of Share Transactions; Mumbai ITAT Deletes Addition U/s 68

Live Law  

On finding that the assessee has issued share application money and subsequently allotted shares which shows that the transactions are genuine and there is no material brought on record by tax authorities that the assessee has benefited from round-tripping, the Mumbai ITAT deleted the addition made u/s 68 of the Income Tax Act, 1961. The Bench of the ITAT comprising …

ITAT Cases Weekly Round-Up: 31 March To 6 April 2024
11 months, 2 weeks ago

ITAT Cases Weekly Round-Up: 31 March To 6 April 2024

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Case Title: Zila Parisad verses Addl. Case Title: Kishorkumar Bhalara verses The Principal Commissioner of Income Tax On finding that the PCIT has held the assessment order passed by AO as erroneous and prejudicial to the interest of the Revenue simply based on incorrect assumption of facts, the Rajkot ITAT directed to set aside the order passed u/s 263 of …

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT
1 year, 2 months ago

S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT

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The Hyderabad Bench of Income Tax Appellate Tribunal has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes.The bench of R.K. Panda and Laliet Kumar has observed that the property is predominantly being used for religious purposes, namely mosques, orphanages, and. The Hyderabad Bench of Income Tax …

ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts
1 year, 3 months ago

ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts

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The Indore Bench of Income Tax Appellate Tribunal has deleted the addition of availing accommodation entries in the shape of Long Term Capital Gain as it was not recorded in the books of accounts.The bench of Vijay Pal Rao and B.M. The Indore Bench of Income Tax Appellate Tribunal has deleted the addition of availing accommodation entries in the shape …

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition
1 year, 10 months ago

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has held that the additions could not have been made in the absence of any incriminating material.The bench of Kavitha Rajagopal and B.R. Baskaran observed that the additions made by the Assessing Officer under Section 68 of the Act towards the sale of shares and also estimated. The Mumbai Bench of …

Failure Of Assessee To Explain Identity And Creditworthiness Of Creditors And Genuineness Of Transaction: ITAT Sustains Addition
2 years, 7 months ago

Failure Of Assessee To Explain Identity And Creditworthiness Of Creditors And Genuineness Of Transaction: ITAT Sustains Addition

Live Law  

The Allahabad Bench of the Income Tax Appellate Tribunal has sustained the addition as the assessee failed to explain the identity and creditworthiness of the creditors and the genuineness of the transaction. The AO made additions to the income of the assessee towards unexplained deposits and cash credits. The assessee filed a second appeal with the tribunal, and the tribunal …

ITAT Upholds CIT(A) Order Confirming Addl Rs. 4.99 Lakh As Unexplained Cash In Muthoot Group MD’s Bank Accounts [Read Order]
7 years, 4 months ago

ITAT Upholds CIT(A) Order Confirming Addl Rs. 4.99 Lakh As Unexplained Cash In Muthoot Group MD’s Bank Accounts [Read Order]

Live Law  

In George Alexander vs The Assistant Commissioner of Income-Tax, the Income Tax Appellate Tribunal has dismissed an appeal filed by the assessee, managing director of the Muthoot Group, against the order of the Commissioner of Income Tax ). However, the CIT rejected the contentions of the assessee and found that the AO, during the course of working out the unaccounted …

ITAT Upholds CIT(A) Order Confirming Addl Rs. 4.99 Lakh As Unexplained Cash In Muthoot Group MD’s Bank Accounts [Read Order]
7 years, 4 months ago

ITAT Upholds CIT(A) Order Confirming Addl Rs. 4.99 Lakh As Unexplained Cash In Muthoot Group MD’s Bank Accounts [Read Order]

Live Law  

In George Alexander vs The Assistant Commissioner of Income-Tax, the Income Tax Appellate Tribunal has dismissed an appeal filed by the assessee, managing director of the Muthoot Group, against the order of the Commissioner of Income Tax ). However, the CIT rejected the contentions of the assessee and found that the AO, during the course of working out the unaccounted …

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