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2021 (2) TMI 1010 - AT - Income Taxincome from house property - Deemed rental of the basement property owned by the assessee - HELD THAT:- AO had proceeded with on the basis of a misconception that the assessee had received an amount of ₹ 66 lac as an interest free deposit from a tenant without any monthly rent. Insofar the contention of the ld. D.R that as the assessee had not shown any deemed lettable value of the property under consideration, the A.O, thus, had rightly determined the same as per the mandate of Sec. 23(1) of the Act is concerned, we find that the same being devoid and bereft of any force cannot be sustained - it is the claim of the ld. A.R that as the property in question was being used by the assessee for its own business and had not been let out thus, the issue of determining the deemed annual lettable value of the same does not arise. In the absence of any material which would support the claim of the A.O that the assessee had let out the property in question, the same cannot be summarily accepted. Accordingly, finding no infirmity in the well reasoned deletion of the addition of ₹ 33.60 lac made by the A.O towards deemed lettable value of the property in question, we uphold the order of the CIT(A) to the said extent. Grounds of appeal Nos. (i) & (ii) are dismissed. Addition u/s 68 - credits in the respective accounts of the shareholders as an unexplained credit - HELD THAT:- On a perusal of the ledger accounts of the shareholders w.r.t payment of stamp duty and registration charges, it can safely be gathered that on 20.03.2012 the amount of stamp duty/charges was distributed amongst them on the basis of their respective shareholdings. Admittedly, the assessee instead of debiting the stamp duty expenses to the premises in the “fixed assets a/c” had wrongly debited the respective accounts of the shareholders. As observed by us hereinabove, as and when the respective amount of contributions were received vide account payee cheques from the shareholders, the same were credited to their respective accounts. As the aforesaid transaction was not only fully explained, but there was no reason for treating the duly substantiated credits in the respective accounts of the shareholders as an unexplained credit within the meaning of Sec. 68 of the Act, the CIT(A), in our considered view had rightly vacated the addition that was made by the A.O u/s 68. Addition u/s 41(1) - Liability under the head “BMC Charges Payable” - A.O holding a conviction that the said amount was no more outstanding added the same u/s 41(1) - HELD THAT:- In order to substantiate the fact that the payments were made by the aforementioned respective shareholders, the assessee had placed on record the copy of the pass book of the assessee for the period April, 2007 to March, 2008, alongwith the ledger accounts of the respective shareholders. Before the CIT(A), it was the inter alia claim of the assessee that as the aforesaid amount paid to BMC in the year 2007-08 was never claimed as a deduction, the same, thus, by no means could have been added as the income of the assessee u/s 41(1) - In our considered view, the CIT(A) had rightly observed that as the assessee had at no stage claimed much the less was allowed any deduction of the “BMC charges” in question in assessment for any year, thus, the provisions of Sec. 41(1) could not have been invoked. Disallowance of security charges and repairs and maintenance charges pertaining to the property given on rent - CIT-A sustaining addition 20% - HELD THAT:- Nothing has been brought to our notice by the ld. D.R which would point out any perversity in the aforesaid observation of the CIT(A). Accordingly, in the backdrop of the fact that only 20% of the building in question was let out by the assessee, we concur with the view taken by the CIT(A). Accordingly, in the backdrop of the fact that only 20% of the building in question was let out by the assessee, we concur with the view taken by the CIT(A) that the security charges and repairs & maintenance charges only to the said extent could have been disallowed on the pretext that the same were subsumed in the statutory 30% deduction allowed while computing the income under the head ‘house property’. As such, finding no infirmity in the view taken by the CIT(A) in context of the aforesaid issue under consideration, we uphold the same to the said extent.
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