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2019 (2) TMI 1541 - HC - Income TaxCharacterization of income - security deposit paid in lieu of lease agreement - in B/S shown as assets, as “receivables” - concurrent nature of the findings - unforeseen circumstances as sealing of the premises on account of non-conforming user by directions of the Supreme Court through the Monitoring Committee, the premises could not be used - lessee/assessee agreed not to claim the security deposit and as a result sought to claim the amount as deduction which was denied by revenue - denial of treatment as revenue expenditure merely because it was paid in the course of a dispute - assessee urges that the ruling in Triveni Engineering [2010 (9) TMI 26 - DELHI HIGH COURT] is inapplicable because of peculiar facts of that case as relied upon to deny claim of deduction HELD THAT:- The distinctions sought to be made by the assessee/appellant that Triveni Engineering (supra), was decided in peculiar circumstances of the case, since the amalgamated company’s books were assessed as it were in the hands of the transferee company [Triveni Engineering], in the opinion of this Court, is an insubstantial aspect which is not sufficient to distinguish the ruling. The reasoning in Triveni Engineering (supra) is not limited to such a fact situation. Furthermore, this Court notices that the decision in Madras Auto Services (P.) Ltd. apart from other judgments were also noticed by this Court in Triveni Engineering (supra). This Court is also un-persuaded with the argument that the amount of ₹ 5.8 crores, could be treated as a revenue expenditure merely because it was paid in the course of a dispute. Clearly, the character of the amount was of a capital nature and remained so; all that the assessee did was to agree that it would not claim a refund out of ₹ 10.58 crores, agreeing to forgo ₹ 5.8 crores. As a result, the Court is of the opinion that given the concurrent nature of the findings, no question of law arises - Decided against assessee.
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