ITAT Restricts Notional Rent Addition

The Delhi ITAT upheld the partial relief granted by the CIT(A) in a case involving taxation of notional rental income on unsold commercial property converted from stock-in-trade into an investment asset. 

The Revenue challenged the CIT(A)’s order deleting a substantial portion of the addition made towards alleged notional rental income from unsold commercial units.

The Tribunal held that notional rent could be computed only for the period after conversion of the property into a capital asset and dismissed the Revenue’s appeal seeking restoration of the larger addition made by the Assessing Officer.