M/s. Tricon Builders, Pune V. Income-tax Officer, Ward - 7(3), Pune

ITA 475/PUN/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0663 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 14-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.475/PUN/2018 / ASSESSMENT YEAR : 2014-15 M/S. TRICON BUILDERS, B-14, MITTAL COURT, ASHOKA PAVILION, NEAR LAL DEVAL, CAMP, PUNE PAN : AABAT5723D VS. ITO, WARD-7(3), PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-5, PUNE ON 18-12-2017 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.1,68,000/- AS DEEMED RENT O N UNSOLD FLATS SHOWN AS STOCK IN TRADE. APPELLANT BY SHRI V.L. JAIN RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 04-12-2018 DATE OF PRONOUNCEMENT 04-12-2018 ITA NO.475/PUN/2018 M/S. TRICON BUILDERS 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E- AOP IS A BUILDER WHICH DECLARED FIVE FLATS IN ITS CLOSING STOCK. THE AO, APPLYING THE PROVISIONS OF SECTION 23 OF THE INCOM E- TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT), COMPUTED THE INCOME UNDER THE HEAD `INCOME FROM HOUSE PROPERTY AT RS.1,68,000/- AT THE RATE OF RS.4,000/- PER MONTH PER F LAT. NO RELIEF WAS ALLOWED IN THE FIRST APPEAL. 4. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS SEEN THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE PUNE BENCH OF THE TRIBUNA L IN M/S. COSMOPOLIS CONSTRUCTION VS. ITO. VIDE ITS ORDER DATED 12-09-2018, THE TRIBUNAL IN ITA NOS. 230 & 231/PUN/2018 HAS HELD THAT NO RENTAL INCOME CAN BE COMPUTED WHEN FLATS A RE HELD AS STOCK IN TRADE. IN REACHING THIS CONCLUSION, THE TRIBUNAL RELIED ON CERTAIN OTHER JUDGMENTS AND THE ORDERS. I N THE ABSENCE OF ANY DISTINGUISHING FACT, HAVING BEEN BROUGH T TO MY NOTICE BY THE LD. DR AND RESPECTFULLY FOLLOWING THE PRECEDENT, I OVERTURN THE IMPUGNED ORDER ON THIS SCORE AND DIRECT TO DELETE THE ADDITION. ITA NO.475/PUN/2018 M/S. TRICON BUILDERS 3 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH DECEMBER, 2018. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 04 TH DECEMBER, 2018 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-5, PUNE 4. / THE PR. CIT-4, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.475/PUN/2018 M/S. TRICON BUILDERS 4 DATE 1. DRAFT DICTATED ON 04-12-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04-12-18 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *