9911796707
TMI Blog2021 (7) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal was admitted by a Bench of this Court vide order dated 25.10.2017 on the following substantial questions of law: a) Whether the Tribunal was justified in law in not accepting that the compensation amount of Rs.one Crore paid by the appellant is not deductable under Section 48 of the Income Tax Act, 1961 and consequently passed a perverse order on the facts and circumstances of the case? b) Whether the Tribunal erred in law in holding the transaction was not genuine without appreciating the material on record which clearly indicates that the appellant had paid compensation for surrender of land by the tenant and consequently passed a perverse order on the facts and circumstances of the case? c) Whether the Tribunal was justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals). In the aforesaid factual background, this appeal has been filed. 3. Learned Senior counsel for the assessee submitted that the assessee had leased out the premises vide lease deed dated 22.02.1996 for a period of 40 years to M/s Pathi Prints. The assessee wanted to sell the premises leased out to the aforesaid lessee. Therefore, the assessee entered into a deed of cancellation on 23.03.2009 with M/s Pathi Prints and the assessee agreed to pay a compensation of Rs. 1 Crore to the lessee to cancel the lease and to hand over the vacant possession of the property. It is further submitted that the assessee thereafter, sold the portion of the property vide registered sale deed dated 13.05.2009 for a consideration of Rs. 2.5 Crores a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding is a finding of fact, which does not suffer from any infirmity and therefore, no interference is called for in this appeal. 5. We have considered the submissions made by learned counsel for the parties and have perused the record. The issue which arises for consideration in this appeal is whether an amount of Rs. 1 Crore paid as compensation by the appellant to the lessee can be claimed as expenses incurred in connection with transfer of the capital asset. The assessee was the owner of land measuring 1,07,810 square feet. Out of the aforesaid land, the 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. The assessee in the previous years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was in possession in capacity as tenant in respect of 29,845 square feet of land and subsequent payment of compensation of Rs. 1 Crore to the lessee, is not genuine. The aforesaid finding has been affirmed by the Commissioner of Income Tax (Appeals) as well as by the tribunal. However, it is pertinent to mention here that the assessee for the Assessment Year 2007-08 had offered an income of Rs. 10,05,000/- from the lessee under the head of 'House Property', which was accepted by the Assessing Officer and the aforesaid rental income was taxed. Subsequently, it is not open for the Assessing Officer to deny the existence of the aforesaid transaction in the subsequent Assessment Year. 6. It is pertinent to note that lease deed was ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
