Onetime payment of annual rent for business advantages allowable

Multitude Infrastructure Pvt. Ltd. Vs DCIT (ITAT Delhi) It is seen that the assessee purchased a hotel constructed on leased land obtained from Jaipur Development Authority (JDA) from Vishnu Apartments Pvt. Ltd. vide agreement dated 05.11.2008 and as per clause 28 of the sale agreement, the assessee was under an obligation to pay to the seller Government rate taxes and cess etc. from the date of agreement. Vide letter dated 22.06.2011, JDA required Vishnu Apartment Pvt. Ltd. to pay a cumulative sum of Rs.1,35,34,794/- (Rs.62,15,978 on account of Annual Lease Rent up to Year 2011-12 and lumpsum...