TMI Blog1999 (11) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... nduring benefit." 2. The assessee had obtained right of occupancy in the building belonging to Shri Nirmal Commercial Ltd., described as Nirmal Flat at Bombay, by acquiring 270 equity shares in that company and also making an irrevocable deposit. As per the agreement, the assessee was required to pay 'licence fee' to Shree Nirmal Commercial Ltd. for the purpose of meeting the expenses towards maintenance of the building and for other overheads. During the year under consideration an amount of Rs. 52,126 was paid by the assessee. In turn the assessee had sublet the accommodation to 3 parties from whom he had, during the year under consideration, received an amount of Rs. 84,634. The assessee was required by the AO to file certain details, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of licence-fee is of capital nature. After going through the agreement, the licence-fee is to be paid on monthly basis for right to use the space for a period of five years which can be further extended. The licensee has a right to sublet the licensed space subject to various conditions laid down in the agreement. Payment of monthly licence fee entitles the appellant to use the licensed space and, therefore, the payment in anyway is of Revenue in nature. The expenditure cannot be treated as a capital expenditure but are of revenue in nature and are essential to earn the income. Therefore, I am of the opinion that the payment of monthly licence-fee could be deducted from the income. Since there is a difference between the figure men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to M/s Nirmal Commercial Ltd. was all along being allowed. In this connection he referred to the assessment order for the preceding asst. yr. 1986-87, copy placed on record, in which deduction for licence-fee of Rs. 52,206 was allowed after discussion of the matter. The learned counsel contended that no show cause notice for deviating from the past practice was given to the assessee. He strongly relied on the order of the learned CIT(A). 6. We have carefully considered the facts and circumstances of the case, the material to which our attention was invited and the rival submissions. The finding of the learned CIT(A) that the income was assessable under the head 'Other sources' has not been challenged by the Department. The learned D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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