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RENTAL INCOME

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Vishal (Querist)

27 February 2017 Sir, Rental income derived from the unsold flats which were shown as stock in trade in the books of the assessee should be assessed under which head??

Tony John

Tony John (Expert)

27 February 2017 It should be assessed under Income from House Property. You may refer Discovery Estates Pvt Ltd case by Delhi High Court (2013). Also refer New Delhi Hotels Ltd by the same court (2014).
But contrary view was taken by Gujarat High Court in Neha Builders Pvt Ltd's case (2008).

Vishal

Vishal (Querist)

27 February 2017 Sir I refer the case law you have mentioned above ie., Discovery Estate Pvt. Ltd.. But I don't find the logic because as the unsold flats are shown as stock.. Then the rental income should be taxed as business income.. This is as per my view.. Kindly rectify..

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