Shanti Prime Publication Pvt. Ltd.
Sec. 37(1) of Income Tax Act, 1961 - Business expenditure - In the present case, stamp duty was payable for the lease of a business premises at sector 62, Noida which were taken on lease from Galaxy Mercantile Ltd. The stamp duty was paid in accordance with The Stamp Duty Act, 1899, being a statutory levy for registering of the lease deed. The issue is whether the stamp duty paid by the assessee for registering the lease deed, though for 10 years, is revenue expenditure or not. The issue is squarely covered in favour of the assessee by the decision of the Hon'ble Bombay High Court in CIT vs. Reliance Industrial Infrastructure Ltd. (2015) 234 Taxman 256 (Bom) . wherein it was held that the period of lease for which the property has been taken cannot be regarded as a decisive test to determine the nature of the expenditure and further held that it is not disputed that the stamp duty amount has been paid on lease deed for the carrying on of the business of the assessee and therefore the amount of stamp duty paid for has to be allowed as revenue expenditure. Further, the Hon'ble High Court relying on the decision of the Hon'ble Supreme Court in case of Taparia Tools Ltd. vs. Jt. CIT (2015) 276 CTR (SC) 1 also held that same is also not a deferred revenue expenditure. In view of this, Ld. ITAT directed the lower authorities reversing the decision to allow the stamp duty charges of Rs. 68 lakhs paid by the assessee as expenditure for the current year holding it to be revenue expenditure in nature allowable under s. 37(1) of the Act. In the result, the appeal of the assessee allowed. - FISERV INDIA (P) LTD. V/s ASSTT. CIT -  206 TTJ 669 (ITAT-DELHI)