Applicability of Sec 269SS of I.T Act., Income Tax

[MOHAMED YACOOB SHARIFF]

Sir,

one my client has entered into the lease agreement for his property where in the lessee has paid Rs.500000/ in cash to the Landlord (assessee) and taken the possession of the  property, with the condition that the NO rent will be paid and Rs. lease amount of Rs.500000/- will be refunded after 3 years, without any interest on the same.

Now the assessing officer says 1) Assessee should have received the lease advance by Chq only and not by cash, hence, the provisions of 269 will apply . 2) And Assessee has to officer the fair rent from such such property 

Pl clarify if he is correct, when there is an agreement.

Pl clarify with the case laws in favour of assesee.

Posts / Replies

[Rama Krishana]

The AO may be right as long as you say that amount of ₹ 5,00,000/- is refundable after 3 years or on expiry of lease, as the case may be.

It is your stand which will be the base of the final order. What is the nature of amount is question of facts and examination.

If you have got any view, please share with me.