The Tribunal held that the assessee was entitled to claim one-ninetieth of the amount every year till the period of lease of 90 years as revenue expenditure. Even according to the matching principles of income and expenditure, the entire expenditure was not allowable in one year when the income corresponding to the expenditure of subsequent years would be reflected in the relevant year only. ( AY.2007-08, 2008-09)
ACIT v. Niit Technologies Ltd. (2020)79 ITR 60 ( Delhi) (Trib)
S. 37(1) : Business expenditure -Capital or revenue – One time lease rental charges for 90 years – One-Ninetieth of amount paid allowable as revenue expenses and balance to be treated as pre paid advance rent .