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TMI Blog2018 (2) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 2010-11. 3. According to the appellant, the following substantial questions of law arise in this appeal :- (i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is right in deleting the addition of Rs. 72,00,000/- by holding that if the payment for lease rental has been made by cheque after deducting the due TDS, then genuineness & business expediency of any expenditure stands established? (ii) Whether on facts and circumstances of the case and in law, the Hon'ble ITAT is right in deleting the addition of Rs. 72,00,000/- by ignoring the fact that the assessee could not prove the business expediency of expenses when the said premises had not been used for the purpose of business? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lease rental was paid through cheques on which tax had been duly deducted at source. The fact of delay in getting the electricity connection cannot be denied, which also could have been the reason for being not able to start the business, since it is not possible to carry on the business without electricity. In order to reduce losses, the appellant had given a part of premises on rent to Ms. Madhu Ahuja at the end of the year and this also proves the genuineness of appellant's case on the issue. It is, therefore, held that the Assessing Officer was not right in disallowing the amount of lease rental. It may also be mentioned that the Assessing Officer has disallowed the amount u/s 40A(2)(a) of the Act, but the amount was not paid to an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh cheque and even TDS as required under the Act was duly deducted. Both the Appellate Authorities took into consideration all these factors and held that the claim of lease money paid cannot be denied. The conclusion reached is logical. 7. Question No.1 is framed incorrectly. The question has been worded to suggest that the authorities held that if the payment of lease rent has been made by cheque and TDS has been deducted, the genuineness of the same and the business expediency stands established. Indeed mere payment by cheque purportedly towards lease rent and the deduction of TDS would not establish a case for deduction. However, the Appellate Authorities have not allowed the claim merely on the basis of payment being made by cheque a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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