1978 (11) TMI 51 - HC - Income Tax

Summary

The High Court of Allahabad held that the assessee, a private limited company in the sugar business, was not entitled to claim a deduction of lease rent of Rs. 77,000 for the assessment year 1970-71. The Tribunal ruled in favor of the department, stating that the liability to pay rent accrued year to year, and the payment was considered rent under the subsisting lease deed. The court answered the referred question in the negative, in favor of the department and against the assessee. The Commissioner was awarded costs of Rs. 200.