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TMI Blog2017 (8) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... ct while claiming deduction under the Income Tax Act and, if so, in which year of assessment is a mixed question of law and fact. Secondly, it was neither decided by any of the authorities below and nor by the Tribunal and the High Court. It may be that since the Revenue itself did not raise it before the authorities below and raised it for the first time before this Court by simply placing reliance on the provisions of the Act and the two Rules mentioned above, this Court cannot decide the same in this appeal, for the first time for want of factual material and legal issues attached to it. In order to decide the issue of deduction, the nature of fixation of rent, its payment, recovery etc. and whether it is statutory or contractual, has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Government fixed the lease rent of the demised land payable by the respondent to the State. The respondent felt aggrieved of the fixation of the lease rent made by the State as, according to them, it was on higher side. The respondent, therefore, objected to the fixation made by the State Government vide order dated 25.06.1988 and prayed for its suitable reduction. By order dated 07.11.1991, the State Government rejected the respondent's request and maintained the order dated 25.06.1988 which had originally fixed the lease rent. 5) It is with these background facts, the respondent filed their Income Tax Return for the Assessment Year 1992-93. In the Return, the respondent claimed deduction of accumulated lease rent amounting to &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two reasons, first, the respondent follows the mercantile system of accountancy and second, the lease rent had been fixed by the State on 25.06.1988. It was accordingly held that since the respondent though was in a position to claim deduction of the lease rent in the Assessment Year 1989-90 and yet failed to claim, it was not permissible for them to claim in future Assessment Year (1992-93). It was without any legal basis. 8) The respondent, felt aggrieved, carried the matter in second appeal before the Tribunal. By order dated 13.09.1999, the Tribunal allowed the respondent's appeal and set side the orders of assessing authority and CIT (appeal). It was held that since the respondent was following the mercantile system of accountan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Assignment Rules 1964 and The Rules for Assignment of Government Land for Industrial Purposes (hereinafter referred to as the Rules ). It was, therefore, his submission that since the liability to determine, fix, pay and recover the lease rent is a statutory in nature and secondly, the respondent is following mercantile system of accountancy in their business for paying the taxes, the liability to pay such dues once accrued, which in this case was accrued on 25.06.1988, the deduction could be claimed in the same Assessment Year, i.e., 1989-90. Learned counsel urged that since the respondent failed to claim the deduction in the Assessment Year 1989-90, they had no right to claim such deduction in any subsequent assessment year much les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile claiming deduction under the Income Tax Act and, if so, in which year of assessment is a mixed question of law and fact. Secondly, it was neither decided by any of the authorities below and nor by the Tribunal and the High Court. It may be that since the Revenue itself did not raise it before the authorities below and raised it for the first time before this Court by simply placing reliance on the provisions of the Act and the two Rules mentioned above, this Court cannot decide the same in this appeal, for the first time for want of factual material and legal issues attached to it. 15) In our considered opinion, in order to decide the issue of deduction, the nature of fixation of rent, its payment, recovery etc. and whether it is sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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