Home › Income-Tax Act › Multitute Infrastructure Pvt Ltd v. Dy .CIT ( 2020) The Chamber’s Journal – March – P .123 ( Delhi) (Trib)

Multitute Infrastructure Pvt Ltd v. Dy .CIT ( 2020) The Chamber’s Journal – March – P .123 ( Delhi) (Trib)

S. 37(1) : Business expenditure – One time payment of annual lease rent is held to be allowable as revenue expenditure

The Assessing Officer disallowed the lease rent as capital expenditure  which was affirmed by the CIT (A). On appeal the Tribunal held that one time payment of the annual rent as per the lease deed is a revenue expenditure . Followed CIT v. Madras Auto  Service ( P) Ltd  (1998) 233 ITR 468 (SC) ( ITA No. 2722/Del/ 2017 dt .13-12-2019 ) (AY. 2012 -13)