Lease cannot be termed as sale if ownership rights not extinguished

Brief of the case The Delhi High Court in case of Teletube Electronics Ltd Vs CIT held that there has to be an extinguishment of ownership rights in order that a Lease transaction can be said to be a ‘sale’. The leasehold right is only for a period of ten years and at the end of that period the leased facilities revert to the owner. Consequently, the Court is unable to agree with the conclusion of the ITAT that in the present case there was a ‘sale” of leasehold rights by virtue of the lease agreement in question. Facts of the case The Assessee had two divisions i.e. a pic...