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Case Law Details

Case Name : M/s.Foxconn India Developer (P) Ltd. Vs ITO (Madras High Court)
Related Assessment Year :
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Brief of the case:

One time upfront payment cannot be considered as lease rent when dominant intention is sale of rights

The Hon’ble Madras HC in the above cited case held that the one time upfront payment made by assessee lessee to lessor for the acquisition of leasehold rights over an immovable property for a long duration of time say 99 years could not be taken to constitute rental income at the hands of the lessor because the dominant intention of leasing is sale of rights in

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3 Comments

  1. Phani Rajkumar says:

    If I am paying 1 time payment for 30 years lease for Land, Whether INDAS 116 is applicable or not?, How to calculate Right to use of asset,when there is no future Lease liability or Asset?

  2. Phani Rajkumar says:

    If I am paying one time lease payment for 30 years of Lease for Land, Is INDAS 116 applicable, how to calculate Right to use asset, when there is not future Liabilities or Assets?

  3. Nem Singh says:

    One time payment for acquiring long time leasehold right is purchase consideration and out of the purview of section 194I and a well settled issue by several courts.

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