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2019 (7) TMI 1498 - CALCUTTA HIGH COURTProportionate rent in respect of amortization of payment for acquisition of leasehold rights - HELD THAT:- As decided in MUKUND LTD. [2007 (2) TMI 358 - ITAT MUMBAI] in case of termination of lease, the ‘premium’ was non-refundable and, therefore, the same could not be considered as advance payment of rent. There was no clause in the agreement to show that the amount of ₹ 2.04 crore was paid by the assessee as advance rent for all future years and the lump sum payment of future years rent had been paid to avail some concession for advance payment of rent or for some other business consideration. The land in question was inheritable also as per the terms and conditions of the agreement with the MIDC. Therefore, the consideration of ₹ 2.04 crore was paid to the MIDC as a price for obtaining the leasehold rights for a period of 99 years from the MIDC in favour of the assessee. Parties will be heard whether this is a case for restoration of the matter to the Tribunal for finding on facts.
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