TaxTMI 
TaxTMI 
2021 (1) TMI 27
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....the Act) was passed on 27th January, 2016 by the ld. Assessing Officer determining total taxable income of the assessee at Rs. 5,49,45,741/-. The only addition is the disallowance of registration charges to Rs. 12,08,861/- for a leased property. 4. The assessee preferred an appeal before the ld. CIT (Appeals) who also confirmed the above disallowance as per para No. 3 of his order as under:- " 3.0 Grounds of appeal 1 and 2 are adjudicated together. These grounds of appeal pertain to assessing officer disallowing depreciation of Rs. 12,08,861/- on the registration charges pertaining to AY 2011-12. 3.1 Observation of assessing officer in assessment order is as under:- "4.1 It was observed from the computation of income for the year under consideration that the assessee company had claimed depreciation at Rs. 47,72,435/- (Rs. 35,63,574/- + Rs. 12,08,861/-), however, as per Auditor's report, the allowable Deprecation as per Income Tax Act was shown at Rs. 35,63,574/-. Further, it was observed from Note No. 4 of the Balance Sheet that addition during the year in capital reserve represented the amount received from Strategic Partner ("SP") M/s Alok Industrie....
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....ich is reproduced as under:- "8. Contingent Liability Current year Nil Previous year (The company contingent liability on 31.03.2010 is Rs. 3,62,57,800/- towards payment of stamp duty payable on the registration of the lease deed pertains to land and structure there on taken on lease subscription and shareholders agreement executed between the NTC Ltd and Alok Industries Limited the amount of the Stamp duty will bring in by Strategic partner as additional share premium). 9. Statutory dues of Rs. 3,62,65,825/- as per schedule 9 current liabilities) includes the amount of stamp duty payable of Rs. 3,62,65,825/- is recoverable from the strategic partner M/s Alok Industries Ltd as per share subscription and shareholders agreement the same sill be shown as capital reserve." 4.4 As already discussed in para 4.1 above, as per Note No. 4 of the Balance Sheet, addition during the year in capital reserve represented the amount received from Strategic Partner M/s Alok Industries Ltd. on account of account of stamp duty paid by the company and as per share subscription & shareholders' agreement between NTC SP and the assessee company all the Governm....
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....the following articles:- "(ii) The Strategic Partner shall subscribe to the Strategic Partner Shares, which shall constitute 49% of the issued, subscribed and paid up equality share capital of the company, on a fully diluted basis, against cash by paying the Strategic Partner's Shares subscription Amount, at a premium of Rs. 112.40 (Rs. One Hundred and Twelve and Paisa Forty only) per share aggregating to Rs. 55 Crores. The balance Equity Shares of the Company, constituting 51% of the issued, subscribed and paid up equity share capital of the Company shall be paid by the strategic partner to the Company by wau of demand draft or banker cheque issued by a nationalized bank and shall be payable at par at New Delhi. It is clarified that all Government and/ or statutory duties, stamp duties, cesses liabilities payable by the company in regard to the completion of the transaction contemplated under the Undertaking Transfer Agreement and the Lease deed shall be solely borne by the strategic partner and the Strategic Partner will bring in additional amount into the company for making such payments which shall be considered as share premium for subscribing to the strategic partner....
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....w of the above it is clear that the liability of stamp duties shall not accrue in the hands of the appellant company but the same shall accrue in the hands of the strategic partner M/s Alok Industries Ltd. Which is the strategic partner. I uphold the decision of Assessing Officer. Thus ground of appeal 1 and 2 are dismissed. " 3. Despite notice, none appeared on behalf of the assessee. Therefore, the issue is decided on the merits of the case as per information available on record. 4. The ld. Departmental Representative vehemently supported the order of the ld. Lower authorities. 5. We have carefully considered the rival contentions. The fact shows that as per the share holders' agreement entered into between National Textile Corporation and M/s. Alok Industries Ltd., National Textile Corporation offered its factory premises to the assessee company at an yearly rent of Rs. 100/- and Alok Industries was to bring additional amount into the company for making payment of registration on lease agreement etc. The amount to be paid by Alok Industries towards the above expenditure was to be treated as share premium and share capital. On construction of the above agreement, the low....