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TMI Blog2011 (3) TMI 1710X X X X Extracts X X X X X X X X Extracts X X X X ..... R D E R PER VIJAY PAL RAO,JM This appeal by the assessee is directed against the order dated 21.10.2009 of the CIT(A)-Thane for the assessment year 2005-06. 2. The assessee has raised the following grounds in this appeal: "1. the ld. CIT(A) erred in rejecting the claim of the appellant company that the income in the nature retention money of ₹ 1,12,68,153/-does not accrue till perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue against the assessee. 4. The ground no.1 is dismissed. 5. Ground no.2 is regarding deduction of proportionate leasehold premium. During the course of assessment, the AO noted that the assessee has claimed deduction of ₹ 1,69,773/- under the head lease hold premium on its lease hold land. The assessee has purchased the lease hold rights for the factory at Thane, MIDC in the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rat High Court in the case of DCIT V/s Sun Pharmaceutical Ind Ltd (supra). The relevant paragraphs of the above decisions is reproduced below : "6. The facts are not in dispute. The lease agreement entered into between the assessee and GIDC has been analyzed and relevant terms summarized by the Tribunal. It is not necessary to refer to the said terms in detail in the present proceedings. Suffice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible for it to carry on the business…." 7. The Tribunal has thus, after referring to two decisions of Supreme Court, held that the land in question was not acquired by the assessee. That merely because the deed was register the transaction in question would not assumed a different character. The lease rent was very nominal. By obtaining he land on lease the capital structure of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by the assessee to GIDC was allowable as revenue expenditure. The appeal is dismissed accordingly with no order as to costs " 5.5. We further note that the Special Leave Petition filed by the Revenue vide SLP No.33784/09 has also been dismissed by the Hon. Supreme Court vide order dated 4.12.2009 reported in 325 ITR (st) 6. Hence the order passed by the Gujarat High Court has attained the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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