The Assessee is engaged in the business of development and construction of the real estate project.
In respect of one of its completed real-estate projects it has unsold inventory of residential flats.
The Assessee is not in business of letting out premises / unsold inventory and is actively looking for buyers for sale of the units.
The Assessee is evaluating the need to recognize notional rental income in respect of these unsold inventories.
As per initial advice received by Assessee from its C.A., he has been told to offer the notional / deemed rental income under the head of Income from house property.
However, if the Assessee is required to offer said amount as its income, then there will be huge tax liability.
The Assessee has approached you for second opinion on the matter.
The Assessee eagerly expects you to advise him how such notional amounts need not be treated as its income.
Kindly advise and back up with relevant provisions of the Act as well as judicial precedents. | anreads Forums | anreads