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2013 (10) TMI 702 - AT - Income TaxReassessment u/s 147 - Storage Charges Income from House Property OR Not - The assessee has declared 'storage charges' as income from house property and accordingly claimed statutory deduction of 30% - Held that:- From the reading of the letter dated 5.8.2009 sent by the AO, we notice that the AO has sufficiently explained the grounds on the basis of which he has entertained the belief about the escapement of income - Relying upon GKN Driveshafts (India) Ltd Vs. ITO and Others[2002 (11) TMI 7 - SUPREME Court] - the communication cannot be found fault with - the assessee has sought the reasons for issuing the notices and the AO has supplied the reasons - Thereafter the assessee did not object to the reopening nor did it pointed out the alleged insufficiency of reasons - Instead, we notice that the assessee has participated in the assessment proceedings without raising any objection - Since the assessee did not object to the said communication, there was no occasion for the AO to address the contentions urged. Deduction on Income from House Property - The assessee has claimed 'Plot rent' paid to Cochin Port Trust as deduction while computing the income from house property Held that:- The provisions of Income tax provide for method of computation of income under the head Income from house property - Section 24 of the Act provides for the specific deductions to be allowed from the Annual rental value determined in the manner prescribed in the Act - Sec. 24 of the Act does not provide for deduction of ground rent (plot rent) while computing the income under the head Income from house property there was no infirmity in the decision of Ld CIT(A) on the issue. Disallowance u/s 40(a)(ia) of the Act the assessee did not deduct tax at source from the payments made for transport and delivery charges, which attract disallowance u/s 40(a)(ia) of the Act Held that:- The Ld CIT(A) called for a remand report from the AO - In the report, the AO recommended for disallowance of only Rs.2,52,779/- and Rs.3,47,482/- respectively for assessment years 2005-06 and 2006-07. Accordingly, the Ld CIT(A) sustained the addition to the extent recommended in the remand report and granted relief in respect of balance amounts. Still aggrieved, the assessee is contesting the additions sustained by the ld CIT(A). Addition made u/s 41(1) of the Act - the assessee has written off balances from Sundry creditors account, but did not declare it as income u/s 41(1) of the Act Held that:- The assessee has written off sundry creditors' balances in assessment year 2005-06 and credited the same in the Profit and Loss account - However, while computing the total income, the assessee excluded the above amount - the liability so written off by the assessee is assessable u/s 41(1) of the Act - The assessee has also failed to show that the amounts have not been allowed as a deduction - the assessee, instead of proving its claim with material evidences, simply finds fault with the assessing officer, that too with oral submissions - such types of oral contentions cannot be recognized - the Explanation 1 to sec. 41(1) provides for assessing of liabilities written off by unilateral act also Decided against Assessee.
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