Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 40 - HC - Income TaxDisallowance of enhanced lease rent liability payable to Bombay Port Trust - whether Tribunal was right in not allowing the liability on account of enhanced rent which had been charged by the applicant to its sub-lessees and assessed to tax on accrual basis? - Held that:- It has been brought to our notice that before the Apex Court there was a settlement between the Bombay Port Trust and the lessees. The judgment of the Apex Court details the said fact, which is reported in a case of Jamshed Hormusji Wadia vs. Board of Trustees, Port of Mumbai and another (2004 (1) TMI 96 - SUPREME COURT OF INDIA). It has been held that the rates of rent for the period upto 31/03/1994 shall remain as suggested in the “Compromise Proposal”, which is reproduced in paragraph 6 (supra) by the Apex Court. AO as such will have to consider the rent as agreed in the said compromise proposal and assess it accordingly. It is submitted that for the period of 1989-90 to 1996-97, the Assessing Officer has assessed the returns as per the compromise formula. The same would be applicable for the assessment year 1988-89 also. It would be appropriate for the Assessing Officer to assess the return for the year 1988-89 as per the compromise formula and as has been assessed for the year 1989-90 to 1996-97.
|