I have a doubt regarding charging section 22 for income from HP. Where HP is used for the purposes of own business then it will not be taxed under sec 22.
What does used for business mean? Does it mean as cost reduction apparatus like used a storage etc or a profit making apparatus like let out on lease? Does it mean a passive use like held idle as stock in trade or an active use? Due to many decisions taken by the courts I need clarity on the interpretation.
11 April 2018
There is an amendment in Finance Act 2017 saying that HP held as stock in trade upto 1 yr from date of completion the annual value will be NIL. My doubt is the moment a HP becomes stock in trade it is used for the business then charging section 22 is inapplicable. Then why is HP held as stock in trade taxed under sec 22?
CAclubindia
