2020 (12) TMI 1262 - HC - Income Tax

Under-statement of income - addition on account of lumpsum leasing charges received by the assessee - Lease deed is unregistered one - tribunal deleted the addition - HELD THAT - Tribunal has decided the aforesaid issue in favour of the assessee on the basis that the lease rentals have been consistently offered to tax and the revenue cannot take any inconsistent stand. As submitted by revenue that the aforesaid lease on which reliance has been placed by the Tribunal is unregistered , the same has not been taken into consideration by the Tribunal. Therefore, the matter needs to be remitted to the Tribunal to consider the substantial question of law involved in this appeal afresh. The order passed by the Tribunal is hereby quashed. The matter is remitted to the Tribunal to consider the substantial question of law involved in this appeal afresh, in accordance with law.

Summary

Issues:
Appeal under Section 260-A of the Income Tax Act, 1961 regarding deletion of addition of ?1.74 crores on account of lumpsum leasing charges received by the assessee.

Analysis:
The appeal was filed by the revenue concerning the Assessment Year 2010-11, raising the substantial question of law regarding the deletion of ?1.74 crores on account of lumpsum leasing charges received by the assessee. The Tribunal had decided in favor of the assessee, stating that the lease rentals had been consistently offered to tax, and the revenue could not take an inconsistent stand. However, the revenue argued that the lease relied upon by the Tribunal was unregistered, which was not considered by the Tribunal. Consequently, the High Court found that the matter needed to be remitted to the Tribunal for a fresh consideration of the substantial question of law involved in the appeal.

The High Court quashed the order passed by the Tribunal to the extent of the issue in question and remitted the matter back to the Tribunal for a fresh consideration in accordance with the law. Both parties were allowed to raise all contentions, and it was clarified that all contentions were kept open for further proceedings. Ultimately, the appeal was disposed of by the High Court, emphasizing the need for a reevaluation of the substantial question of law by the Tribunal in light of the unregistered lease issue raised by the revenue.