9911796707
TMI Blog2021 (10) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... . Divetia, A.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee's appeal for A.Y. 2010-11, arises from order of the CIT(A)-XVI, Ahmedabad dated 07-01-2014, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. The solitary issue in the ground of appeal of the assessee is confirming the disallowance of rental expenses of Rs. 13,11,244/-. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that issue of extension of lease period had been settled during the year under consideration as per the order of the Distt. Collector Surendranagar, therefore, the claim of expenses were admissible during the year. The Assessing Officer has not accepted the submission of the assessee stating that assessee has maintained books of account on mercantile system, therefore, a sum of Rs. 13,11,244/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paper book. The assessee society was required to pay rent of Rs. 9,64,150/- and delayed interest of Rs. 3,47,094/- totaling to Rs. 13,11,244/- which was paid on 29th August, 2009 in the financial year relevant to the year under consideration. Thereafter, the collector district Surendernagar passed an order on 8th Sep, 2009 renewing the lease of the petrol pump for further period of 15 years. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lease was under dispute and the same was determined only by the Distt. Collector, Surendrangar on 8.9.2009 in the financial year relevant to the assessment year under consideration. The assessee society was required to pay rent of Rs. 9,64,150/- and delayed interest of Rs. 3,47,094/- totaling to Rs. 13,11,244/- which was paid by the assessee on 29th August, 2009. On the basis of this payment the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justification for the disallowance of the claim of the assessee without considering the relevant material fact that the impugned liability was crystallized during the year under consideration. Therefore, we allow the claim of the assessee. Accordingly, the appeal of the assessee is allowed. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27-10-2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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