Assessee entered into a lease agreement for a property.\u00a0 As per agreement assessee paid security deposit and same was reflected in balance sheet in capital under assets as receivables.\u00a0 However, on account of unforeseen circumstances assessee sought to vacate premises which resulted in dispute between lessor and assessee.\u00a0 Assessee agreed not to claim security deposit to end dispute and claimed same as\u00a0 revenue expenditure. Assessing Officer disallowed claim of assessee. The Tribunal affirmed the order of the\u00a0 Assessing Officer. On appeal\u00a0 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. SLP dismissed.\u00a0 (AY. 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Capital or revenue-Security deposit for lease premises-Foregone in dispute with lessor-Capital expenditure-SLP dismissed.[Art. 136]. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39699","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-akj","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=39699"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39699\/revisions"}],"predecessor-version":[{"id":39700,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39699\/revisions\/39700"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=39699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=39699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=39699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}