IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 1130/Srt/2024 (Assessment Year 2013-14)

(Hybrid hearing Jaiprakash Khanchand Aswani, A.C.I.T., Top Floor, Ason City, City Light Circle-1(2), Vs.

Road, City Light, Surat. Surat.

PAN No. AASPA 3016 C Appellant/ assessee Respondent/ revenue Assessee represented by Shri Rajesh C Shah, CA Department represented by Shri Mukesh Jain, Sr.DR Date of Institution of Appeal 30/10/2024 Date of hearing 16/01/2025 Date of pronouncement 16/01/2025 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER:

1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals)/Addl./JCIT(3)-3, Bengaluru (in short, the ld. CIT(A)) dated 03/09/2024 for the Assessment year (AY) 2013-14.

Following grounds of appeal have been raised by the assessee:

“1. The ld. CIT(A) has erred in not following the order of the jurisdictional tribunal on the same issue for another year.

2. The ld. CIT(A) has erred in dismissing the appeal, but in order she has mentioned to treat business income, however, there is no deeming provision for rest income from the business.

3. The learned Income-tax Officer was not justifying in making the addition of Rs. 15,62,400/- on account of House Property and also the Ld. CIT(A) has erred in confirming the same.

4. The appellant reserves the right to add, alter, amend, or withdraw any grounds of appeal.”

2. Rival submissions of both the parties have been heard and record perused.

At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that the grounds of appeal raised by the assessee are covered in favour of assessee by the decision of the Tribunal in assessee’s own case for A.Y. 2010-11 and 2011-12. The ld. AR of the assessee submits that he has already placed on record copy of decision of Tribunal.

3. On the other hand, the learned Senior Departmental Representative (ld. Sr.

DR) for the revenue after going through the order of Tribunal in assessee’s own case for A.Y. 2010-11 and 2011-12 supported the orders of the lower authorities.

4. We have considered the submissions of both the parties and have gone through the orders of the lower authorities carefully. We find that the Assessing Officer while passing the assessment order noted that the assessee is in the business of real estate and has shown stock in trade of 16 flats and 12 shops during the year. The Assessing Officer by following the decision of Hon’ble Delhi High Court in CIT Vs Ansal Housing Finance & leasing Company Pvt. Ltd. ITA No. 18/1999 dated 31/03/2012 brought the unsold stock of flats and shops to taxation and taxed the same under income from ‘house property’ on the basis of deeming annual letting value. On appeal before the ld. CIT(A), the ld. CIT(A) directed the Assessing Officer to treat the income from unsold flat and commercial premises as business income.

5. We find that the grounds of appeal raised by the assessee is squarely covered in favour of assessee by the decision of Tribunal in assessee’s own case for A.Y. 2010-11 and A.Y. 2011-12. In the case of A.Y. 2010-11, this Bench has followed the order passed in A.Y. 2011-12 dated 18/12/2018 in ITA No.

2237/Ahd/2015. Relevant part of subsequent decision dated 21/10/2021 in ITA No. 160/Srt/2018 is extracted below:

“6. We have considered the rival submission of the parties and have gone through the orders of Lower Authorities. We find that a similar set of facts in assessee’s own case for the A.Y. 2011-12, the Co-ordinate Bench of Tribunal by considering the decision of Jurisdictional High Court in Neha Builders Pvt. Ltd.(supra) passed the following order:

“7. We have heard the rival submissions and perused the material on record. It is an undisputed fact the assessee has shown the properties as stock in trade in the books of accounts. The shops and flats sold by the assessee