TMI Blog2021 (7) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - I.T.A. NO.43 OF 2017 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is a private limited company registered under the Companies Act, 1956 engaged in the business of printing and finishing of silk sarees and fabrics. The assessee filed its return of income for the Assessment Year 2009-10 declaring the total income of ₹ 18,94,000/-. The case of the appellant was selected for scrutiny and the Assessing Officer issued a notice under Section 143(2) of the Act. The assessee filed a reply to the aforesaid notice on 07.10.2010. The Assessing Officer by an order dated 30.08.2011 determined total income of the assessee at ₹ 1,27,64,292/- after setting off unabsorbed depreciation. The Assessing Officer also disallowed the amount of compensation to the extent of ₹ 1 Crore paid by the assessee to M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that the Assessing Officer cannot bring to tax the rental income from the property and simultaneously claim that compensation paid to the lessee for vacating the premises is not a genuine transaction. It is submitted that the findings, which are recorded by the Assessing Officer are perverse and the Commissioner of Income Tax (Appeals) and the tribunal has affirmed the same without any application of mind. It is also urged that the tax planning is permissible under the provisions of the Act. In support of aforesaid submissions, reliance has been placed on decisions in 'CIT VS. MISS PIROJA C. PATEL', (2000) 242 ITR 582 (BOM.), 'CIT VS. T. SREENIVASA RAO', (1987) 166 ITR 593 (AP), 'UOI VS. AZADI BACHAO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered a sum of ₹ 10,05,000/- under the head 'Income from House Property', which was assessed to tax by the Assessing Officer. Thereafter, a deed of cancellation was executed between the assessee and the lessee on 23.03.2009. The lessee was paid a sum of ₹ 1 Crore to cancel the lease and to hand over vacant possession of the property. Thereafter, by a registered sale deed dated 13.05.2009, the land measuring 29,845 square feet was sold for a consideration of ₹ 2,50,00,000/- to third party. The aforesaid sale deed contains a reference to the lease deed executed in favour of the lessee as well as recital as to delivery of possession. The lessee is a consenting witness in the sale deed. The Assessing Officer had insp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red 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 under Section 48 of the Act. The findings recorded by the authorities under the Act is perverse. For the aforementioned reasons, substantial question of law Nos.1 and 2 are answered in favour of the assessee and against the revenue. In the result, the order dated 08.09.2016 passed by the tribunal in relation to Assessment Year 2009-10 to the extent it pertains to substantial questions of law involved in this appeal are hereby quashed. In the result, appeal is allowed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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