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2017 (8) TMI 123 - HC - Income TaxAllowable expenditure - excess claim of premium paid on plot - revenue or capital expenditure - assessee claimed the same in its business of ship breaking as it has obtained that plot on lease from GMB - Held that:- The same is held to be revenue expenditure by the learned Commissioner of Income-tax (Appeals) confirmed by the learned Tribunal. The said issue was covered against the Revenue in view of the decision of the Division Bench of this court in the case of Sun Pharmaceuticals Ind. Limited (2009 (3) TMI 587 - Gujarat High Court). In the case before the Division Bench, the Division Bench has held that where the assessee took a land on lease for 99 years at a nominal rent of ₹ 40 per year and paid a sum of above ₹ 48 lakhs as advance rent, as the land was not acquired by the assessee, advance rent was allowable as revenue expenditure and could not be treated as capital expenditure. Similar is the position in the present case. Under the circumstances, no error has been considered by the learned Tribunal in deleting the addition made on account of excess claim of premium paid on the plot. Question No. 1 is answered against the Revenue and in favour of the assessee. Addition under section 2(22)(e)- Held that:- Identical question came to be considered by the Division Bench of this court and considering the decision the Delhi High Court in the case of CIT v. Ankitech P. Ltd. reported in [2011 (5) TMI 325 - DELHI HIGH COURT] the Division Bench has confirmed the deletion made by the learned Tribunal by holding that from whom loan and advance was taken by the assessee must be a shareholder in the assessee-company.
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