2023 (7) TMI 415 - SCH - Income Tax

Characterization of income - security deposit paid in lieu of lease agreement - in B/S shown as assets as receivables - security deposit given by original assessee was given to one entity which subsequently amalgamated with the assessee - 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 - HC was un-persuaded with the argument that the amount 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 Rs. 10.58 crores agreeing to forgo Rs. 5.8 crores -HELD THAT - No reason to interfere with the order impugned in this petition. The special leave petition is accordingly dismissed.

Summary

The Supreme Court dismissed the special leave petition as it found no reason to interfere with the impugned order. Pending applications were disposed of.

Citation: 2023 (7) TMI 415 - SC Order
Judges: Hon'ble Mr. Justice Aniruddha Bose and Hon'ble Mr. Justice Sanjay Kumar
Petitioner's Counsel: Mr. Ajay Vohra, Sr. Adv. Ms. Kavita Jha, AOR Mr. Neeraj Jain, Adv. Mr. Aniket D. Agarwal, Adv.