TMI Blog2022 (9) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... the security deposit, ad valorem stamp duty will have to be paid. Thus, the intention of the parties namely, lessor and lessee are clear that the lessee shall take premises by paying rents every month for a certain period. In the case of PLANTATION CORPORATION [ 1993 (6) TMI 46 - KERALA HIGH COURT] following the decision of Bombay High Court in CINCIETA PVT. LTD. [ 1982 (2) TMI 58 - BOMBAY HIGH COURT] has recorded that the Allahabad, Calcutta and Karnataka High Courts, while rendering the decisions in United Commercial Corporation V. CIT [ 1970 (8) TMI 10 - ALLAHABAD HIGH COURT] , Gobind Sugar Mills Ltd. [ 1978 (8) TMI 65 - CALCUTTA HIGH COURT] and Hotel Rajmahal [ 1984 (3) TMI 24 - KARNATAKA HIGH COURT] did not have the advantage o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 11 months. In his returns for the Assessment Year 2010-11, the assessee claimed it as revenue expenditure. He has paid stamp duty of Rs.18,04,930/- and registration fee of Rs.4,51,820/- and in all, a sum of Rs.22,56,750/-. For the Assessment Year 2010-11, the assessee claimed it as revenue expenditure. The Assessing Officer rejected the said claim. On appeal, Commissioner of Income Tax (Appeals) upheld the order passed by the Assessing Officer and dismissed the appeal. On further appeal, the Income Tax Appellate Tribunal, Bangalore B Bench [ITAT] has also dismissed ITA No.1851/BANG/2016 by the impugned order dated 19.01.2018. 3. Shri.A.Shankar, learned Senior Advocate submitted that assessee has taken the premises on monthly rent wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ival contentions and perused the records. 7. Shri.Shankar, has also placed the lease deed for our perusal. It shows that rent is payable every month and the lease period is for 29 years and 11 months. 8. There is no dispute with regard to the fact that monthly rent payable by any assessee is to be treated as revenue expenditure. 9. Law requires that if the period is more than one year, the lease deed must be registered under Section 17B of the Registration Act, 1908. Further, based on the monthly rent and the security deposit, ad valorem stamp duty will have to be paid. Thus, the intention of the parties namely, lessor and lessee are clear that the lessee shall take premises by paying rents every month for a certain period. There i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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