9911796707
TMI Blog2016 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.5 crore, made by the Assessing Officer and upheld by the CIT(A) was rightly deleted by the learned Tribunal. In that view of the matter, the question formulated is answered in the affirmative and against the revenue. - ITA 56/2008 - - - Dated:- 11-7-2016 - Girish Chandra Gupta And Arindam Sinha, JJ. For the Petitioner : Mr. M.P. Agarwalla, Adv. Appears For the Respondent : Mr. S. Bhowmick, Adv. Appears ORDER The Court : The subject matter of challenge in the appeal is a judgment and order dated June 26, 2007, passed by the learned Income Tax Appellate Tribunal, E Bench, Kolkata, in ITA No.762/Kol/2007, pertaining to the assessment year 2002-03, by which an appeal preferred by the assessee was allowed. The aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... normal production of the factory starts. The Assessing Officer made an addition of a sum of ₹ 150 lakkhs on the ground that the assessee has failed to justify reason for allowing reduction of lease rent to the lessee-company which belongs to the same group of companies. The lease rent has, therefore, accrued in the hands of the assesseecompany amounting to ₹ 2,25,00,000/- which was receivable as per agreement and ₹ 1,50,00,000/- is added to the total income of the assessee-company being accrued lease rent for the relevant previous year. The CIT(A) agreed with the views of the Assessing Officer and added as follows: In my opinion, the effect of the agreement between the lessor and the lessee cannot be modif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he head lessor, the assessee and the sub-lessee are all sister concerns. He submitted that if due to breakdown of the boiler, it was necessary on the part of the assessee to reduce the rental payable by the sub-lessee, the assessee, in that case, would have approached the head lessor for proportionate reduction of the rent payable to the former by the assessee. The fact that the assessee did not do any such thing, is a pointer to show that the reduction in the rent payable to the assessee is not a genuine reduction. The submission advanced by Mr. Agarwal has been vehemently opposed by Mr. Bhowmick. He submitted that Mr. Agarwal has made out a new case. The genuineness of the transaction was never in issue before the learned Tribunal or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebt is discharged. He submitted that once the assessee accepted a sum of ₹ 75 lakhs in satisfaction of the agreed sum of ₹ 2.25 lakhs, the debt, if any, of the balance sum of ₹ 1.5 crore payable by the sub-lessee stood discharged. He contended that the revenue cannot, in the circumstances, seek to make the addition for a sum which the assessee never received nor is the sum receivable in future. He submitted that the learned Tribunal, for appropriate reasons, has deleted the addition made by the Assessing Officer and upheld by the CIT(A). This Court should refrain from interfering with the order passed by the learned Tribunal. We have considered the rival submissions advanced by the learned Advocates. There is no d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
