Assessee entered into a lease agreement for a property.  As per agreement assessee paid security deposit and same was reflected in balance sheet in capital under assets as receivables.  However, on account of unforeseen circumstances assessee sought to vacate premises which resulted in dispute between lessor and assessee.  Assessee agreed not to claim security deposit to end dispute and claimed same as  revenue expenditure. Assessing Officer disallowed claim of assessee. The Tribunal affirmed the order of the  Assessing Officer. On appeal  High Court held that the character of amount was of capital nature and assessee agreed to not to claim refund of security deposit, said amount could not be treated as revenue expenditure merely because it was paid in course of dispute. (AY. 2008-09)