M/s. Varun Developers Vs. ACIT, Circle-2, Pune

Parties Involved

Facts Summary

The assessee, M/s. Varun Developers, is a firm engaged in construction activities. For the assessment year 2016-17, the firm declared a total income of Rs.93,03,425/-. The return was selected for scrutiny, and the Assessing Officer found that the assessee claimed a deduction under section 80IB(10) of the IT Act, which was rejected. The Assessing Officer also determined deemed rental income of Rs.7,98,000/- on the unsold flats held as stock in trade, which the assessee contested. The assessee appealed to the CIT(A)/NFAC, which sustained the addition of deemed rental income. The assessee then appealed to the ITAT.…

Legal Issues

• 1. Whether the addition of Rs.7,98,000/- on account of deemed rent in respect of unsold units held as stock in trade is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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