1949 (9) TMI 25

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....nbsp; J. C. Pal For the Commissioner : S. Mitra JUDGMENT HARRIES, C.J.- This is a reference made by the Appellate Tribunal, Bombay Bench, under Section 66 of the Indian Income-tax Act, stating a case for the opinion of this Court upon the following question:- "Whether, on the facts and circumstances of the case, the sum of Rs. 10,000 paid by the assessee to Madras Publishing H....

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....ncial position of the Madras Publishing House Ltd., however, was unsatisfactory and the cinema was never built with the result that the assessee of course never obtained a lease and wrote this sum off as a bad debt. The assessees claim that this sum was an allowable deduction in computing the assessees' income under Section 10 of the Indian Income-tax Act. But the Income-tax Officer as well....

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.... which was to come into existence. It was, in short, a payment as salami for the lease. If the payment was a payment for a lease to be granted to the assessees, there would be considerable force in Dr. Gupta's contention. But it does not appear that the sum of Rs. 10,000 was paid as premium or salami for the lease, but on the contrary was an advance payment of rent under the lease, which wa....

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.... to a payment made by way of advance rent for a lease which was to come into existence. It appears that the taxing authorities certainly regarded a similar payment received by the assessees in this light because the assessees were taxed in respect of a sum of Rs. 9,000 which had been deposited with them by a sub-lessee and this deposit appears to have been in the nature of an advance of rent ma....