1978 (11) TMI 51

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....RA C.J.--The assessee is a private limited company and carries on the business of manufacture and sale of sugar. It had acquired on rent an area of 96 acres, on which it built its factory, etc. In the assessment year 1970-71, it claimed an expense of Rs. 77,000 by way of rent payable for the 96 acres of land and taxes. In support of the claim it relied upon an award dated 5th March, 1969, under wh....

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.... the letter written by the assessee to the ITO, to which the award was affixed, it was apparent that the amount had been paid as lease rent for the last ten years to the owners of the land " as per terms of the lease deed". It is, thus, clear that the amount was paid as rent under the subsisting deed of lease for the preceding 10 years. It is not the assessee's case that the lease deed stood suspe....