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2021 (7) TMI 915 - HC - Income TaxExpenditure incurred in connection with transfer of the capital asset - compensation by the appellant to the lessee can be claimed as expenses - assessee had executed a lease deed in favour of the lessee on 22.02.1996 for a period of 40 years in respect of land measuring 29,845 square feet - HELD THAT:- As pertinent to mention here that the assessee for the AY 2007-08 had offered an income of ₹ 10,05,000/- from the lessee under the head of 'House Property', which was accepted by the AO and the aforesaid rental income was taxed. Subsequently, it is not open for the AO to deny the existence of the aforesaid transaction in the subsequent Assessment Year. As pertinent to note that lease deed was executed in the year 1996 in favour of the lessee and was cancelled in the year 2009 after a period of 13 years. The reference to the lease deed is found even in the registered sale deed dated 13.05.2009. The lessee had offered the amount received by it as income in its return. The amount was paid by the assessee and was an expenditure incurred wholly and exclusively for transfer of an asset and therefore, it is deductible u/s 48 - The findings recorded by the authorities under the Act is perverse. Substantial question are answered in favour of the assessee and against the revenue.
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