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2012 (4) TMI 761 - AT - Income TaxExpenditure on Lease premium - Capital or Revenue Expenditure - Assessee entered in agreements with different authorities for obtaining land on long term lease thereon and lease period varies from 10 years to 95 years - Claimed proportionate amount of lease premium paid as advance payable and claimed the expenditure as revenue expenditure u/s. 37 - Allowed by CIT(A) as revenue expenditure following assessee's own case - Thus, Revenue Appeal HELD THAT:- In the issue before Special Bench in the case of JOINT COMMISSIONER OF INCOME-TAX, SPECIAL RANGE 25, MUMBAI VERSUS MUKUND LTD. [2007 (2) TMI 358 - ITAT MUMBAI], the assessee company entered into exactly similar agreement with MIDC as in the present case before us. It was held that "Assessee terminated the lease agreement prior to the expiry of lease period of 99 years. There was also no material on record to show that the assessee had made the advance payment of rent for future years to secure any reduction in the rent payable for the future years or for any other business consideration. Hence, the consideration of amount paid by the assessee for obtaining the leasehold rights from the MIDC in its favour for a period of 99 years was capital in nature and, therefore, not allowable as deduction to the assesse" In assessee’s own case for AY 2003-04, the decision of Special Bench in the case of Mukund Ltd was never cited even though it was available at that time. In such circumstances, we are of the view that now we have alternative except to follow the ratio laid down by Special Bench of this Tribunal in the case of Mukund Ltd. Respectfully following Special Bench in the case of Mukund Ltd we reverse the order of CIT(A) and restore that of the A.O - Decision against Assessee
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