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2015 (8) TMI 831 - ITAT DELHIReopening of assessment - Held that:- Admittedly, there was no scrutiny assessment. Hence, based on the information contained notes to account, the audit party pointed out to the Assessing Officer that impugned amount cannot be allowed as deduction as the amount was paid for infraction of law. The Assessing Officer after considering the information had come to a conclusion that the income got escaped assessment and therefore, initiated the reassessment proceedings. In our considered view this constitutes reason to believe that income got escaped assessment. Therefore, the reassessment proceeding was valid. - Decided against assessee. Disallowance of misuse charges - premises used for the purpose of business on the ground that the same is in the nature of penalty and does not relate to the year under appeal - Held that:- It was mandatory to pay the misuse charges due as on the date of exercising the option of owning the property from leasehold to freehold. In our opinion, the claim was not on account of bad debts, but towards the charges paid for regularization usage of building. The mere nomenclature in the books of account does not determine the allowability or otherwise of the claim and, therefore, considering the fact that the amount was paid under the policy announced by the Government itself, it does not amount to penalty for infraction of the any provision of law. Following the ratio laid down in the case of CIT Vs. Ahmedabad Cotton Mfg. Co. Ltd. [1993 (10) TMI 1 - SUPREME Court] we hold that the amount in question is not in the nature of penalty and, therefore, allowable as deduction. Decided in favour of assessee statistical purposes.
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