COMMISSIONER OF INCOME TAX, TDS-1 vs. M/S INDIAN NEWS PAPER SOCIETY
What did the High Court hold?
The Delhi High Court dismissed the appeal as hopelessly time-barred. Even on merits, the issue was covered by a previous judgment of the court which held that lease premium paid for land is capital expenditure.
What were the facts?
The Revenue filed an appeal under Section 260-A of the Income Tax Act after a delay of 710 days. The appeal concerned the taxability of an additional deposit made by the assessee for securing FSI.
What were the issues?
Whether the appeal filed by the Revenue was maintainable due to significant delay. Whether the additional deposit for FSI constitutes capital expenditure and is not taxable as income.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 575/2016 & C.M.Nos.28453-28454/2016
COMMISSIONER OF INCOME TAX, TDS-1 ..... Appellant Through: Mr.Rahul Chaudhary and Mr.Raghvendra Singh, Advocates
versus
M/S INDIAN NEWS PAPER SOCIETY
..... Respondent Through: Mr.Sunil Fernandes, Ms.Mithu Jain and Mr.Deepak Pathak, Advocates
CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI
O R D E R %
08.08.2016
We are informed that the appeal was earlier under diary no.144135/2014 by another counsel. It was re-filed under the current diary/registration number by the present signing counsel. 2. In view of the order, the earlier diary no.144135/2014 is directed to be deleted. 3. This appeal is hopelessly time barred. The Revenue has preferred it under section 260-A of the Income Tax Act and after delay of 710 days. 4. Although the appeal would fail on the ground of delay, the Court also notices that the question of law sought to be urged is whether the amount assessed as income in the hands of the assessee, on account of additional deposit made for securing FSI, is no longer res integra. It is covered by a previous judgment of this Court in
Commissioner of Income Tax-TDS vs. the Indian Paper Society (for AY 2008-09 and 2010-11) – in ITA Nos.918/2015 & 920/2015 decided on 10.12.2015. The Court had held as under:
......As far as the present case is concerned, the facts brought on record, and which have not been contested by the Revenue, unmistakably show that the payment of the lease premium for the land given on lease to the Assessee for a period of 80 years with “all the rights, easements and appurtenances” was in the nature of a capital expenditure. This coupled with the fact that the MMRDA did not treat the receipt as income clinches the issue in favour of the Assessee and against the Revenue.”
For the above reasons, we find no merit in the appeal. It is dismissed along with the pending applications.
S. RAVINDRA BHAT, J
NAJMI WAZIRI, J AUGUST 08, 2016 rb
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