TMI Blog2021 (10) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... unt as comprised of lease rent and interest pertaining to lease rent and interest for the period 2003 to 2008. On perusal of material on record, it is categorically demonstrated that impugned expenses were crystallized during the year under consideration. There is no doubt about the genuineness of the expenditure. Having considered the material on record, we do not find any justification for the disallowance of the claim of the assessee without considering the relevant material fact that the impugned liability was crystallized during the year under consideration. Appeal of the assessee is allowed. - ITA No. 543/Ahd/2014 ( Assessment Year 2010-11) - - - Dated:- 27-10-2021 - Shri Amarjit Singh, Accountant Member And Ms. Madhumita Roy, Jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere admissible during the year. The Assessing Officer has not accepted the submission of the assessee stating that assessee has maintained books of account on mercantile system, therefore, a sum of ₹ 13,11,244/- being delayed rent and interest on earlier years were not allowable as business expenditure and same was added to the total income of the assessee. 4. Assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee holding that assessee has not claimed rental expenses, only claimed interest component. 5. During the course of appellate proceedings before us, the ld. counsel contended that assessee was given on lease the Government land for 30 years, after expiry of lease period the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dispute and the same was determined only by the Distt. Collector, Surendrangar on 8.9.2009 in the financial year relevant to the assessment year under consideration. The assessee society was required to pay rent of ₹ 9,64,150/- and delayed interest of ₹ 3,47,094/- totaling to ₹ 13,11,244/- which was paid by the assessee on 29th August, 2009. On the basis of this payment the district collector, Surendranagar has passed an order on 8th Sep, 2008 renewing the lease of the petrol pump land for further period of 15 years. The ld. CIT(A) has incorrectly stated in his finding that assessee has only claimed the interest component and not claimed the rental expenses of earlier year, after perusal of the material on record, we f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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