TaxTMI 
TaxTMI 
2017 (7) TMI 40
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....s right in not allowing the liability on account of enhanced rent even to the extent of Rs. 5,95,083/which had been charged by the applicant to its sublessees and assessed to tax on accrual basis?" 2] We have heard the learned counsel for the Revenue as well as the learned counsel for the Assessee. 3] The Assessee is a partnership firm and tenant of Bombay Port Trust. The Bombay Port Trust charges rent under the provisions of the Bombay Rent Act (as it then was). The dispute is about the increase in the rent by the Bombay Port Trust. It is the case of the Assessee that it follows the Mercantile System of Accounting. It had debited a sum of Rs. 10,64,167/in its profit and loss account being the rent charged and payable to the Port Trus....
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....m the Estate Manager, Bombay Port Trust asking the assessee to unequivocally accept the terms and conditions of the enhancement together with the amount of Rs. 12,747.43 towards compensation for February and March 1982. By its letter dated 12th May 1982, the assessee unequivocally accepted the terms and conditions mentioned in letter dated 28th April 1982. In such a case, the assessee would have cleared the compensation claimed by BPT amounting to Rs. 12,474.43. There is no scope for claiming any further enhanced rate of rent in this regard. Even till today, the assessee has not been able to produce any specific letter confirming unequivocal acceptance of the enhanced rent for which deduction has been claimed." 4] On the request of the A....
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....n in the annexures. Notwithstanding the fixation of letting rates for 20 years for good and sufficient reasons, the Board may review and revise the letting rates." 7] The Apex Court in paragraph 40 of the said judgment has held as under; "40. All the appeals are directed to be disposed of in terms of the following directions : (i) by this judgment and in these proceedings the controversy as to the rates of rent applicable to the lessees shall be deemed to have been resolved for the period 1.4.1994 to 31.3.2000; (ii) the 'Compromise Proposals' as approved by the Board of Trustees of the Port of Mumbai in their meeting held on 13.8.1991 which are very fair, just and reasonable, subject to the mod....
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....on and relaxing the general terms and entitling them to reduction in the rates of rent applicable as above said, may file representations each, setting out specific grounds and relevant facts precisely in that regard in the office of the Bombay Port Trust under a written acknowledgement. The Bombay Port Trust shall maintain a register of all such representations filed. No representation filed after the expiry of six weeks from today shall be received or entertained. (viii) We request the High Court to appoint a retired Judge, preferably (and not necessarily) of the rank of District Judge, as a Sole Adjudicator of the objections/representations filed in terms of the above decision. The High Court shall appoint a place of sitting and....
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....ssees to cooperate in finalisation of the disputes. We also expect the lessees to desist from preferring immaterial or frivolous objections or objections just for their sake. If anyone does so the learned Adjudicator may impose costs on him which shall be payable to and recoverable under law by the BPT as arrears of rent. (xi) For the purpose of appointing an Adjudicator and dealing with application, if any, seeking resolution of difficulties, in terms of the preceding direction, we request the learned Chief Justice of the High Court of Bombay at Mumbai to assign this matter for being placed before any learned judge of his Court. We, on our part, suggest in the interest of expeditious disposal, that the matter may be assigned to an....