TMI Blog2008 (8) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on lease of the fruit processing plant for seven years, was allowable as revenue expenditure? Held that- in the light of the decision of The Gujarat High Court in Gujarat Machinery’s case, the amount spent on registration and stamp charges at the time of execution of lease agreement was revenue expenditure. - 9 of 2002 - - - Dated:- 12-8-2008 - DEEPAK GUPTA, AHUJA V. K. JJ. Vinay Kuthial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a period of seven years. It is not disputed that in fact the lease deed was terminated with effect from March 17, 1994. The assessee had spent a sum of Rs. 3,44,251 as stamp duty and registration charges on the lease deed. The Assessing Officer treated this expenditure as capital expenditure by relying upon the judgment of the Karnataka High Court reported in the case of Hotel Rajmahal v. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time the assessee enters into a lease deed securing lease holding rights for a long period, the expenditure incurred on stamp duty, registration and legal fees, etc., should be treated as expenditure of capital nature. 4. However, the Madras High Court in Sri Krishna Tiles and Potteries Madras (P.) Ltd. v. CIT [1988] 173 ITR 311 followed the law laid down by the Bombay High Court in CIT v. Cinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
