TaxTMI 
TaxTMI 
2024 (8) TMI 340
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of the Hon'ble Delhi High Court in case of CIT Vs. Moni Kumar Subba (333 ITR 38) wherein it was held that rateable value is not binding on the Assessing Officer if the Assessing Officer shows the rateable value as per municipal value of the property is not represents correct fair rent? 2. Ground no.2. whether on the facts and circumstances of the case and in law, the learned CIT (A) was correct in deleting the addition made by Assessing Officer on account of expenses which were reversed at the beginning of next year and in respect of which no tax was deducted at source as per the provisions of Chapter XVIIB? 3. Ground no.3 whether on the facts and circumstances of the case and in law, the learned CIT (A) was correct in deleting the addition made b Assessing Officer on account of shortage in stock amounting to Rs. 78,000/- despite the facts that the evidence of shortage of stock brought on record by assessee itself? 4. Ground no.4 whether on the facts and circumstances of the case and in law, the learned CIT (A) was correct in deleting the addition made by Assessing Officer on account of scrap value for 4 days amounting to Rs. 7,56,000/- despite the facts and the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... because of Municipal Ratable Value of the house property. The assessee has relied upon several judicial precedents. The learned Assessing Officer held that according to the provision of Section 23 of the Act, the annual value of the property is to be determined. According to him, the flat given on rent to Deutsche Bank is deriving the monthly rent of Rs. 3,12,500/-, whereas the rent charged from the Tata Sky is Rs. 1,92,500/-. The difference in rent is only because of the security deposit. Therefore, he held that fair market rent of the flat is Rs. 3,12,500/-. Accordingly, he took the annual value of the flat at rent of Rs. 3,12,500/- per month. Accordingly, the difference of Rs. 13,21,000/- was added to the income of the assessee under the head house property determining the fair rate of Rs. 37,50,000/- against the rent declared by the assessee at Rs. 24,29,000/-. When the matter reached before the learned CIT(A), he deleted the addition on the basis of the decision of the co-ordinate Bench in assessee's own case in ITA No. 672/Mum/2011, for A.Y. 2007-08. He further held that though for that year, the ITAT has restored the issue back to the file of the learned Assessing Officer t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he market rate of the rent. As in case of assessee's own case for earlier years the co-ordinate Bench has resorted the matter back to the file of the learned Assessing Officer to determine the annual letable value, we also restore this matter back to the file of the learned Assessing Officer for reason being that he has compared the rent of F.Y. 2010-11, received from Deutsche Bank with rent received in F.Y. 2013-14 from Tata Sky. The learned Departmental Representative also relied upon the decision of the Hon'ble Delhi High Court in CIT Vs. Moni Kumar Subba (333 ITR 38) to submit that the rateable value is not binding on the learned Assessing Officer if the rateable value as per Municipal record does not represent the correct fair rent. The learned Assessing Officer may consider the same and after giving an opportunity to the assessee decide the issue afresh. Accordingly, ground no.1 of the appeal is allowed with the above direction. 08. Ground no.2 of the appeal is regarding deletion of the addition made by the learned Assessing Officer on account of expenses provided at the end of the year which were reversed at the beginning of the year and no tax is deducted thereon at th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....diture in its books of account as assessee has incurred these expenses wholly and exclusively for the purpose of the business. Therefore, the tax should have been deducted at source at the time of making the provision. He otherwise submitted that if the amount of tax due on the whole sum has not been deducted as at the end of the year but subsequently, tax has been deducted and same is deposited on or before the due date of filing of the return of income of the assessment year in which provision is made, disallowance to that extent could not have been made. However, no such fact is available on the record. Therefore, the order of the learned CIT(A) is not sustainable. 011. We have carefully considered the contention of the learned Departmental Representative. We find that the provision has been made by the assessee of Rs. 1,81,15,000/- at the end of the accounting year as of assessment year 31st March 2014. Admittedly, the assessee has reversed the above provision on the first day of the next previous year i.e., 1st April 2014. As the payer and the payee are identified, the nature of services is also ascertained and the amount of liability is also determined, there is no reason wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has deleted the addition. We do not find any infirmity in the same. Even otherwise in absence of any adverse material if on physical verification shortage of stock is found, it is an ordinary loss in case of a manufacturer, same could not have been disallowed by the learned Assessing Officer, accordingly, we dismiss round no.3 of the appeal. 015. Ground no.4 is with respect to the deletion of the addition of Rs. 7,56,000/-. The learned Assessing Officer found that assessee has shown Rs. 689,00,000/- as sale of scrap till 27thMarch 2014. The learned Assessing Officer questioned the stock from 27th March 2014 to 31stMarch 2014, and why same is not accounted for. The assessee submitted that scrap is recorded as sale only when it is sold. Generation of scrap is not at all recorded as scrap sale. This is so because there is no certainty about the sale price of this scrap. The learned Assessing Officer rejected the contention and held that as assessee has generated the scrap and sold it up to 27th march, 2014 of Rs. 689 lacs, an average per day scrap sale is Rs. 1.89 lacs and scrap sale for 4 days would have been Rs. 7.56 lacs, the addition was made to that extent. When the matter reach....