https://www.taxtmi.com/caselaws?id=36418 Unregistered lease documentation does not by itself defeat deduction under the Income-tax Act where the expenditure was actually incurred for business purposes. An instrument required to be registered under section 17 of the Registration Act, 1908 is inadmissible to prove the transfer itself, but section 49 permits reliance on it for collateral purposes, including showing the nature of possession and tenancy. The decisive test for tax deduction is the factual incurring of the liability during the relevant year and whether the payment is otherwise allowable as business or revenue expenditure. On that basis, enhanced ground rent paid under the lease was deductible, and disallowance based solely on non-registration was unsustainable. en-us Tue, 09 Sep 1980 00:00:00 +0530 Mon, 22 Mar 2010 12:05:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36418 Unregistered lease documentation does not by itself defeat deduction under the Income-tax Act where the expenditure was actually incurred for business purposes. An instrument required to be registered under section 17 of the Registration Act, 1908 is inadmissible to prove the transfer itself, but section 49 permits reliance on it for collateral purposes, including showing the nature of possession and tenancy. The decisive test for tax deduction is the factual incurring of the liability during the relevant year and whether the payment is otherwise allowable as business or revenue expenditure. On that basis, enhanced ground rent paid under the lease was deductible, and disallowance based solely on non-registration was unsustainable. Case-Laws Income Tax Tue, 09 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36418