Unsold Flats held as Stock-in-Trade should be Treated as Business Stock, Not Income from House Property: ITAT on Palm Grove’s Matter

The ITAT has ruled that unsold flats held as stock-in-trade should be treated as business stock and not as income from house property. The case involved Palm Groves, which held unsold flats as stock-in-trade and claimed them as business stock for tax purposes. The Assessing Officer had treated the unsold flats as income from house property, leading to a tax dispute. The ITAT found that the unsold flats were part of the business inventory and should be treated as such. This ruling provides clarity on the classification of unsold real estate inventory and ensures that businesses are taxed appropriately.