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TMI Blog2003 (4) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... State Bank of India. The assessee instituted legal proceedings for the vacation of the building/for effecting the increase in the rent. A compromise had been arrived at between the assessee and the lessee i.e., State Bank of India on 3-9-1984. One of the clauses in the aforesaid settlement was that an amount of Rs 1,19,582 was to be paid to the assessee for the balance advance rent as agreed during 1977 equivalent to nine months rent on old rate not paid then. Thus, the assessee received a sum of Rs. 1,19,582. The Assessing Officer added the aforesaid amount to the income of the assessee by stating that the amount was not assessed in any earlier years and since it was not mentioned anywhere to which period that amount related. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and there is no room for considering the advance rent as a part of annual lettable value. In other words, the advance rent cannot be brought to tax in the year of receipt as the income from house property only be computed on the basis of annual lettable value of the property. In that view of the matter, we do not see any infirmity in the findings of the learned CIT(A) on this issue and hence we decline to interfere. 6. The next ground of appeal is directed against the action of the CIT(A) in deleting the addition of Rs. 38,643 on account of fall in G.P. rate. 7. The assessee was dealing in purchase and sale of rubber and plastic chemicals. The Assessing Officer noticed that the assessee had shown the G.P. rate during the year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer has made the addition merely on the ground that the G.P. rate of the assessee was lower in comparison with the earlier years. However, he has not assigned any other reasons while making the addition. It is well settled law that merely low profit may provoke an enquiry but that by itself without more cannot justify an addition to the profits shown. As we have already stated hereinabove that the Assessing Officer has not pointed out any material defect in the books of account and the addition had been made merely on the basis that the G.P. rate during the year was low in comparison to the earlier year. An addition on that basis is not tenable in the eyes of law and, therefore, the learned CIT(A) has rightly deleted the same. This gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the same amount had been given. 12. After considering the rival submissions, we do not see any infirmity in the findings of the learned CIT(A) on this issue since the matter has been clarified by the CIT(A) to overcome the future litigation. Furthermore, the powers of the CIT(A) are coterminus with the powers of the Assessing Officer and what the Assessing Officer could have done, the learned CIT(A) has the powers to do the same in accordance with the law. In the instant case, the learned CIT(A) had clarified this aspect of the matter for the purpose of avoiding the future dispute or doubt. In our view, there is nothing wrong in the action of the learned CIT(A). It is an admitted position that the assessee had not received rental i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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