KRISHAK BHARTI COOPERATIVE LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX

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ITA - 504 / 2022HC Delhi02 December 20222 pages
For Petitioner: SUREKHA RAMAN
AI SummaryDismissed

What did the High Court hold?

The High Court noted a previous decision by a coordinate bench which dismissed a similar appeal. The present appeal was closed with the understanding that parties would abide by any different conclusion reached by the Supreme Court in a pending SLP.

What were the facts?

The appeal concerns the assessment year 2015-2016 and the tax treatment of a lump sum payment made towards lease premium. The assessee argued that it should be treated as a capital expenditure.

What were the issues?

The key issue was whether a lump sum payment made for a lease premium should be classified as a capital expenditure for income tax purposes.

AI-generated summary — verify with the full judgment below

$~37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 504/2022 & CM APPL. 52241-42/2022

KRISHAK BHARTI COOPERATIVE LTD ......Appellant

Through: Ms Surekha Raman, adv.

versus

ASSISTANT COMMISSIONER OF INCOME TAX

......Respondent Through: Mr Abhishek Maratha, Sr. Standing Counsel.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MS. JUSTICE TARA VITASTA GANJU

O R D E R %

02.12.2022 [Physical Hearing/Hybrid Hearing (as per request)] CM APPL. 52241/2022

1.

Allowed, subject to just exceptions.

CM APPL. 52242/2022

2.

Allowed, subject to the appellant filing legible copies of the annexures, at least three days before the next date of hearing. ITA 504/2022 3. This appeal is directed against the order dated 26.07.2022 passed by the Income Tax Appellate Tribunal concerning Assessment Year (AY) 2015-2016.

ITA 504/2022

Page 1 of 2

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:49:59

4.

The issue which arises for consideration is: whether lump sum payment made towards lease premium should be treated under capital expenditure? 5. Ms Surekha Raman, learned counsel for the appellant/assessee, has fairly placed before us, an order of the coordinate bench of this Court dated 29.07.2022 in ITA No. 236/2022. 5.1 The coordinate bench, following the decision dated 12.07.2012 rendered by another coordinate bench in ITA No. 205/2010 titled KrishakBharti Cooperative Vs. Deputy Commissioner of Income Taxhas dismissed the appeal. 6. We have been informed by Ms Surekha Raman, that a Special Leave Petition (SLP) i.e., SLP(C) No. 19399/2016 has been preferred vis-a-vis the decision rendered by the coordinate bench of this Court in ITA No. 205/2010, which is pending consideration. 7. Accordingly, the instant appeal is closed, with a caveat,that if the Supreme Court was to reach a different conclusion, parties will abide by the decision so rendered.

RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

DECEMBER 2, 2022/SA

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ITA 504/2022

Page 2 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:49:59

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