Sec. 22 of Income Tax Act, 1961 – Income from house property – The issue raised relate to the addition on account of ALV of flats, added on notional basis are that the assessee-company engages itself in the business of development of mini-townships, construction of house property, commercial and shop complexes etc. In the assessment completed for the year under consideration, the AO assessed the ALV of flats which the assessee had constructed, but were lying unsold under the head "Income from house property". The assessee however, contended that the said flats were its stock-in-trade and therefore the ALV of the flats could not be brought to tax under the head "Income from house property". The AO added the notional value of unsold flats to the total income of the assessee. The CIT(A) set aside the addition made by the AO. The revenue's appeal to the Tribunal was unsuccessful.
High Court decided the issue in favour of revenue and against the assessee holding that:-  the intention of the lawmakers, was that occupation of one's own property, in the course of business, and for the purpose of business, i.e. an active use of the property, (instead of mere passive possession) qualifies as "own" occupation for business purpose”. However, other issues were decided against the revenue and, therefore, revenue filed SLP before Supreme Court but withdrew the same. Hence, dismissed as withdrawn – ANSAL HOUSING & CONSTRUCTION LTD. [2020] 271 TAXMAN 030 (SC)