Case Law Details
Shell India Markets (P) Ltd. Vs. DCIT (ITAT Mumbai)
AO had referred to the provisions of section 269UA to come to the incorrect conclusion that once the period of lease agreement is more than 12 years, then it is considered as deemed transfer of land and whatever lease rentals are paid, whether it is periodical or lumpsum, it is for the purpose of acquiring such property. Since the assessee had not made any lump sum payment, except refundable security deposit for acquiring such lease rights and it was also amply clear from the clauses of the lease agreement that the assessee was not owner of the land but mere user of the land for certain period, therefore, AO had made wrong addition by treating periodical lease rental as capital expenditure.
FULL TEXT OF THE ITAT JUDGMENT
These cross appeals filed by the assessee as well as the revenue are directed against the order of CIT(A)-7, Mumbai dated 27-12-2011 and it pertains to AY 2006-07. Since both the appeals pertains to same assessee, for the sake of convenience, they were heard together and are disposed of by this common order.
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