Quick Check-up on local inspector

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RRud

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As a general contractor with only a beginning knowledge of the NEC, I came across an inspector today who told me that my new 200 amp panel could not be located in a walk-in 100 sq. ft. closet, although it was completely unobstructed. Citing the NEC, he suggested that we place the new panel on the bedroom wall, and hang a picture over it. Wouldn't that be considered covering the panel? The question is, after seeing many panels and sub-panels located in closet spaces in multi-tenant buildings, is there truly a section that prohibits placing a panel in a closet?
 
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