2019 (7) TMI 1498

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..... be considered as advance payment of rent. There was no clause in the agreement to show that the amount of ₹ 2.04 crore was paid by the assessee as advance rent for all future years and the lump sum payment of future years rent had been paid to avail some concession for advance payment of rent or for some other business consideration. The land in question was inheritable also as per the te .....

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..... t of the Tribunal has given rise to question formulated for answer. Advance rent paid by his client-assessee and thereafter amortized each year, has been disallowed. This was done in relying on Special Bench judgment of Tribunal in JCIT versus Mukund Ltd . reported in (2007) 106 ITD 231 (MUM)(SB) . It is noticed from extract of Special Bench judgment in impugned judgment that Spe .....

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..... resume the land in question. Thus, in case of termination of lease, the premium was non-refundable and, therefore, the same could not be considered as advance payment of rent. There was no clause in the agreement to show that the amount of ₹ 2.04 crore was paid by the assessee as advance rent for all future years and the lump sum payment of future years rent had been paid to avail some con .....

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