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TMI Blog2024 (1) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... the lease by both the parties. Secondly, the assessee has incurred that registration expenses in connection of his business. Assessee needed premises in order to carrying on the business in various places and accordingly, the assessee taken property on rent. The period of the agreement perhaps is more than one year and attracted the compulsory registration of the agreement. The assessee cannot enjoy that property forever under a rent agreement/lease. The assessee may have to vacate that property before efflux of time depending on the business conditions of that particular place. Therefore, we are of the view that the lower authorities erred in treating the registration fees incurred by the assessee as capital expenditure. Accordingly, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-05-2023 pertaining to Assessment Year [AY] 2008-09. 2. The brief facts of the case are that the assessee is engaged in the business of direct multi level marketing of goods and services and derives income from products and services being sales of consumer products like solar heater, suiting lengths, dealing in insurance policies etc. On 27-02-2008, a survey u/s. 133A of the Act was conducted at the business premises of the assessee. During the course of survey proceedings, books and documents were impounded by the survey team. Thereafter, statutory notice u/s. 142(1) of the Act was issued and served upon the assessee on 16-03-2009. As there was no response from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. The ld. AO in compliance to that order of the Tribunal completed the assessment vide order dated 31-12- 2018. The ld. A.O disallowed the following amounts and added to the total income of the assessee. (i) Land registration charges Rs. 26,14,248/- (ii) Service Tax Rs. 50,00,000/- (iii) Disallowance u/s 14A Rs. 2,56,721/- Aggrieved, the assessee filed appeal before the ld. CIT(A). The Ld. CIT(A) vide order dated 22-05-2023 partly allowed the appeal of the assessee. 5. Aggrieved further, the assessee filed the present appeal before the Tribunal. Heard the rival submissions of the parties and perused the materials on record. The Ld. AR submitted that the registration charges incurred by the assessee in executing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property. It is for a specific period only and terminable as per terms and conditions of the agreement even before the expiry of the period of the lease by both the parties. Secondly, the assessee has incurred that registration expenses in connection of his business. The assessee needed premises in order to carrying on the business in various places and accordingly, the assessee taken property on rent. The period of the agreement perhaps is more than one year and attracted the compulsory registration of the agreement. The assessee cannot enjoy that property forever under a rent agreement/lease. The assessee may have to vacate that property before efflux of time depending on the business conditions of that particular place. Therefore, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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