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2015 (8) TMI 1215 - HC - Income TaxHigher rate of depreciation @ 40% - assessee was engaged in the business of letting out assets on hire - Held that:- Decided against revenue and in favour of the respondent-assessee as decided in assessee own case [2011 (6) TMI 737 - BOMBAY HIGH COURT] - Decided against revenue. Lease equalization credited to P&L Account over and above the lease rental - Tribunal held it cannot be considered as income and thereby upholding reducing of assessee's total income by lease equalization - Held that:- Assessing Officer has completely misunderstood the claim of the respondent-assessee in respect of the lease equalization fund. It is not disputed even by the Assessing Officer that the lease rent which has been received by the respondent/assessee has been offered to tax. Even if one accepts the submission on behalf of the revenue that these guidelines have not been notified by the Central Government for under Section 145(2) of the Act and thus cannot be accepted yet what follows is that the amount credited as a lease equalization fund to Profit and Loss Account has to be ignored as it is not real income. It is an amount which is completely notional and brought into the books only for complying with accounting standards and has no relevance to determine the amount of net income chargeable to tax. In that view of the matter, the respondent-assessee was completely justified in reducing the amount of ₹ 2.06 crores credited to the Profit and Loss Account as lease equalization fund for the purposes of determining the income chargeable to tax. - Decided against revenue. Expenditure incurred on stamp duty paid for acquisition of leasehold land for 30 years - ITAT allowed as revenue expenditure - Held that:- Tribunal by the impugned order to state that the period of lease for which the property has been taken, cannot be regarded as a decisive test to determine the nature of the expenditure. In any case, it is not disputed before us that the stamp duty amount has been paid on the lease deed for the purposes of carrying on assessee's business. Once the aforesaid position is accepted then the amount of stamp duty paid for has to be allowed as revenue nature. - Decided against revenue.
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