Expenses incurred on account of premature vacation of leased premises and on construction of temporary structures of leased premises are business expenditure

Asera Software (India) Pvt. Ltd. Vs ACIT (ITAT Bangalore)- With respect to the disallowance of lease cancellation charges it is evident that this loss to the assessee was incurred due to appropriation of security deposit standing with the landlord in lieu of the loss of lease rent to the landlord. As far as the assessee is concerned, it is a payment made for the portion of the rent payable for the balance term of the lease agreement. This expense has crystallised during the relevant assessment year due to the decision taken for termination of the lease agreement. The argument of the Revenue t...