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2022 (10) TMI 975 - AT - Income TaxRental deposits written off - allowable revenue expenses u/s 37(1) - HELD THAT:- We noted that the assessee company has claimed a sum of Rs.2,89,42,376/- as deposits written off on account of payment of deposits on account of lease rental in term of agreement entered with Mahaveer Safety Glass Co. Pvt. Ltd., dated Feb,2008 for the property at Plot Nos.D-9& D-10 in Sipcot Industrial Park, Irungattukottai. The assessee could not occupy the property since the required permission was not taken by the owner of the land from Sipcot and lease could not be finalized. The assessee has filed recovery proceedings by filing a suit before the Hon’ble Madras High Court but that is pending. In the mean time, the assessee had made this claim of rental deposits as write off and claimed as allowable expenditure u/s.37(1). As the issue is exactly identical, respectfully following the Hon’ble Madras High Court decision in the case of Pricol Ltd. [2021 (8) TMI 481 - MADRAS HIGH COURT] we direct the AO to allow the claim of assessee. Appeals filed by the assessee are allowed.
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