M/s. New City of Bombay MFG. Mills Ltd., Mumbai V. ACIT, New Delhi

ITA 6354/DEL/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8485 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: A K SRIVASTAVA
• Keywords: Earning of tax free income; Revenue expenditure; Capital expenditure; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E , NEW DELHI BEFORE SHRI BHAVNESH SAINI , JUDICIAL M EMBER AND SH RI O.P. KANT, ACCOUNTANT MEMBER ITA NO .6354 /DE L/ 2014 ASSESSMENT YEAR : 2011 - 12 M/S. NEW CITY OF BOMBAY MFG. MILLS LTD., 63, T.B. KADAM MARG, MUMBAI. VS. ACIT, CIRCLE - 13(1), NEW DELHI PAN : AACCN7056J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI A.K. SRIVASTAVA, CA RESPONDENT BY MS. RINKU SINGH, SR.DR ORDER PER O.P. KANT, A .M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER DATED 29/08/2014 PASSED BY THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XVI, NEW DELHI [IN SHORT THE LD. CIT(A) ] FOR ASSESSMENT YEAR 2011 - 12, RAISING FOLLOWING GROUNDS: 1. THAT THE LD. AO HAS ERRED IN MAKING THE ADDITION OF RS. 5,64,407/ - U/S 14A OF THE INCOME TAX ACT, 1962 WITHOUT APPRECIATION THE EXPLANATION MADE BY THE ASSESSEE AND FACTS OF THE CASE AND THE LD. CIT(A) HAS ALSO ERRED IN CONFIRMING THE SAME. THUS, THE DISALLOWANCE OF EXPENSES OF RS.5,64.407/ - MAY PLEASE BE DELETED. DATE OF HEARING 28.03.2019 DATE OF PRONOUNCEMENT 04.04.2019 2 ITA NO. 6354/DEL/2014 2. THAT THE LD. AO HAS ERRED IN DISALLOWING THE LEASE DEED REGISTRATION CHARGES OF RS. 12,08,891/ - CLAIMED BY THE ASSESSEE COMPANY DURING THE RELEVANT ASSESSMENT YEAR WITHOUT APPRECIATING THE FACTS OF THE CASE & EXPLANATION MADE BY THE ASSESSEE AND THE LD. CIT(A) HAS ALSO ERRED IN CONFIRMING THE SAME. THUS, THE DISALLOWANCE OF RS. 12,08,861/ - MAY PLEASE BE DELETED. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. B RIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE IS A JOINT - VENTURE COMPANY HAVING 51% SH AREHOLDING OF NATIONAL TEXTILE CORPORATION (NTC) I.E. THE GOVERNMENT OF INDIA UNDERTAKING UNDER THE MINISTRY OF TEXTILE AN D 49% SHAREHOLDING OF M/S ALOK INDUSTRIES L IMITED. THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF TRADING AND MANUFACTURING OF GARMENT AN D DESIGNING ACTIVITY. THE NTC PROVIDED ITS LAND AND EXISTING STRUCTURE THEREON IN MUMBAI TO THE ASSESSEE AT ANNUAL LEASE PREMIUM OF RS.100/P.M. FOR A PERIOD OF 33 YEARS AND ACCORDING TO THE TERMS OF THE LEASE AGREEMENT, ALL THE STAMP DUTY AND REGISTRATIO N CHARGES WERE TO BE BORN E BY THE ASSESSEE. FURTHER , A SHARE SUBSCRIPTION AND SHAREHOLDER AGREEMENT WAS ENTE RED INTO AMONG 1. NTC, 2. ALOK INDUSTRIES L IMITED (STRATEGIC PARTNER) , AND 3. NEW C ITY BOMBAY MANUFACTURING MILLS LTD . (I.E. THE ASSESSEE ). ACCORDING TO CLAUSE 4.6(II) OF THIS TRIPARTITE A GREEMENT, THE STRATEGIC PARTNER WAS REQUIRED TO SU BSCRIBE SHARE AT PREMIUM OF RS. 112.40 PER SHARE AGGREGATING TO RS. 55 CRORE AND ALSO LEASE DEED CHARGES WERE TO BE BORNE BY THE STRATEGIC PARTNER AND FOR T HAT THE STRATEGIC PARTNER WAS TO BRING IN ADDITIONAL AMOUNT IN TO THE COMPANY FOR MAKING SUCH PAYMENTS WHICH WOULD BE CONSIDERED A SHARE PREMIUM FOR SUBSCRIBING THE SHARES BY THE STRATEGIC PARTNER. 3 ITA NO. 6354/DEL/2014 3. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSEE FILED R ETURN OF INCOME ON 28/09/2011 DECLARING TOTAL INCOME OF RS. 7,38,71,310/ - . THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE INCOME - TAX A CT, 1961 (IN SHORT TH E A CT ) WAS ISSUED AND COMPLIED WITH. IN THE ASSESSMENT COMPLETED , THE ASS ESSING OFFICER MADE DIS ALLOWAN CE OF EXPENSES UNDER SECTION 14A OF THE A CT , AMOUNTING TO RS.5,64, 407/ - AND DISALLOWANCE OF LEASE DEED AND REGISTRATION CHARGES OF RS.12,08, 861/ - . AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A), HOWEVER , COULD NOT S UCCEED AND , THUS , IT IS BEFORE THE T RIBUNAL BY WAY OF RAISING GROUNDS AS REPRODUCED ABOVE. 4. IN G OUND NO. 1, THE ASSESSEE IS AGI TATED WITH THE DIALLOWANCE OF RS.5,64, 407/ - MADE BY THE ASSESSING OFF ICER UNDER SECTION 14A OF THE A CT. 4.1 BEFORE US, THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS SOLD ENTIRE INVESTMENT IN MUTUAL FUNDS, SHARES ETC AND THERE WAS NO CLOSING BALANCE. ACCORDING TO THE LD. COUNSEL , IN ABSENCE OF ANY CLOSING STOCK OF INVESTMENT, THE LOWER AUTHORITIES WERE NOT JUSTIFI ED IN INVOKING R ULE 8D(2)(III) OF INCOME - TAX R ULES, 1962 (IN SHORT THE RULES ). 4.2 ON THE CONTRARY, THE LD. DR RELIED ON THE ORDER OF THE LOWER AUTHORITIES AND ALSO CITED THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF MAXOPP INVESTMENT L IMITED VS CIT (2018) 91 TAXMAN.COM 154 (SC). 4.3 WE HAVE HEARD THE RIVAL SUBMISSION AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ASSESSE E EARNED DIVIDEND INCOME OF RS.39, 86,457/ - DURING THE YEAR UNDER CONSIDERATION. AT THE BEGINNING OF THE YEAR I.E. 31/03/2010, T HE ASSESSEE WAS HAVING INVESTMENT I N SHARES AND MUTUAL FUND OF RS.22,57,62, 768/ - . THIS 4 ITA NO. 6354/DEL/2014 ENTIRE INVESTMENT IN SHARES AND MUTUAL FUND WAS SOLD DURING THE YEAR UNDER CONSIDERATION. IN THE RETURN OF INCOME FILED, THE ASSESSEE DID NOT MA KE ANY SUO - MOTU DISALLOWA NCE IN RESPECT OF EXPENDITURE INCURRED IN RELATION TO EXEMPT IN COME UNDER SECTION 14 A OF THE A CT. ACCORDING TO THE ASSESSING OFFICER , CONSIDERING THE INVESTMENT IN SHARES AND MUTUAL FUND AND SALE OF THE SAME DURING THE YEAR UNDER CONSIDERATION, SOME MANAGE RIAL AND ADMINISTRATIVE EXPENSES COULD NOT BE RULED OUT. THE LD. CIT(A) HAS OBSERVED THAT IT IS INEVITABLE THAT OFFICIAL MACHINERY WAS USED BY THE ASSESSEE WHILE MAKING ABOVE INVESTMENT AND OVERHEAD EXPENSES SUCH AS ESTABLISHMENT AND ADMINISTRATIVE EXPENSE S, EXPENSES INCURRED IN USING THE OFFICIAL MACHINERY, SALARIES TO THE TOP MANAGEMENT THAT TAKES INVESTMENT DECISION, EXPENDITURE ON BOARD LEVEL MEETING RELATED TO INVESTMENT DECISION ETC WERE ALSO ATTRIBUTABLE TO THE TAX - EXEMPT INCOME AS A WHOLE. THE LD. C IT(A) OBSERVED THAT SUCH EXPENDITURE ARE NOT SEGREGATED IN THE ACCOUNTS OF THE ASSESSEE AND THEY ARE BEING INCURRED TO EARN BOTH TAX - FREE AND TAX - EXEMPT INCOME. IN VIEW OF THE ABOVE , HE UPHELD THE ACTION OF THE ASSESSING OFFICER OF DISALLOWI NG AMOUNT OF RS.5,64, 407/ - UNDER RULE 8D(2)(III) OF THE R ULES. IN OUR OPINION, THE ASSESSING OFFICER HAS DULY RECORDED DISSATISFACTION AS TO THE ACCOUNTS OF THE ASSESSEE OF CLAIM OF NO EXPENDITURE INCURRED IN RELATION TO EXEMPT INCOME. FURTHER THE CONTENTION OF THE LD. COUNSEL THAT IN ABSENCE OF ANY CLOSING STOCK, NO DISALLOWANCE COULD BE MAD E UNDER RULE 8D(2)(III) OF THE R ULES IS WITHOUT ANY BASIS AND SAME CANNOT BE ACCEPTED. THE LD. ASSESSING OFFICER HAS COMPUTED THE DISALLOWANCE ACCORDING TO THE FORMULA PROVIDED UNDER RULE 8D(2)(III) OF THE R ULES AND WHEREIN IF THE CLOSING STOCK IS NIL, THEN 50% OF THE OPENING STOCK, BECOMES THE AVERAGE 5 ITA NO. 6354/DEL/2014 INVESTMENT. THE ASSESSING OFFICER HAS COMPUTED THE DISALLOWANCE IN ACCORDANCE WITH LAW. IN VIEW OF THE AFORESAID DISCUSSION, WE DO NOT FIND ANY ERROR IN THE ORDER OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE AND ACCORDINGLY WE UPHOLD THE SAME. THE GROUND NO. 1 OF THE APPEAL OF THE ASSESSEE IS ACCORDINGLY DISMISSED. 5. IN GROUND NO. 2, RELATES TO THE DISALLOWANCE OF LEASE DEED AND REGISTRATI ON CHARGES OF RS. 12,08,891/ - . 5.1 BEFORE US, THE LD. COUNSEL OF THE ASSESSEE FILED A PAPER BOOK CONTAINING PAGES 1 TO 104 AND SUBMITTED THAT THE LEASE DEED REGISTRATION CHARGES THOUGH HAVE BEEN PAID TO THE ASSESSEE BY THE STRATEGIC PARTNER, IT WAS RESPONS IBILITY OF THE ASSESSEE AS PER THE AGREEMENT BETWEEN THE ASSESSEE AND M/S NTC. THE LD. COUNSEL REFERRED TO RELEVANT PARAGRAPH OF THE LEASE DEED AGREEMENT, TO EMPHASIZE THAT STAMP DUTY AND LEASE DEED REGISTRATION CHARGES WERE TO BE BORNE BY THE LESSEE I.E. THE ASSESSEE. ACCORDING TO LD. COUNSEL , IT WAS A REVENUE EXPENDITURE TO BE ALLOWED IN THE HANDS OF THE ASSESSEE. HE FURTHER SUBMITTED THAT THE STRATEGIC PARTNER HAS CONTRIBUTED THE SAID CHARGES BY WAY OF ADDITIONAL AMOUNT IN THE FORM OF SHARE PREMIUM. ACCO RDING TO THE LD. COUNSEL, THE STRATEGIC PARTNER HAS MERELY REIMBURSED THE COST OF EXPENSES TO THE ASSESSEE BUT INCURRING EXPENSES WAS THE RESPONSIBILITY OF THE ASSESSEE AND THUS , IT WAS INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF THE BUSINESS AND AL LOWABLE IN THE HANDS OF THE ASSESSEE. 5.2 LD. DR , ON THE OTHER HAND , RELIED ON THE ORDER OF THE LOWER AUTHORITIES. 5.3 WE HAVE HEARD THE RIVAL SUBMISSION AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE FACTS IN BRIEF IN RELATION TO ISSUE IN DISPUTE HAVE A LREADY BEEN ME NTIONED IN EARLIER PARAGRAPHS. 6 ITA NO. 6354/DEL/2014 THE LEARNED ASSESSING OFFICER HAS OBSERVED THAT THE ASSESSEE AMORTIZED TOTAL STAMP DUTY AND LE ASE REGISTRATION CHARGES OF RS.3,62,65, 825/ - OVER THE LEASE PERIOD OF 33 YEARS AND CLAIMED CORRESPONDING EXPENSES OF RS.12,08, 861 DURING THE YEAR UNDER CONSIDERATION. ACCORDING TO THE ASSESSING OFFICER THIS AMOUNT WAS IN THE NATURE OF CAPITAL EXPENDITURE, WHEREAS ACCORDING TO THE ASSESSEE , THE BUILDING PREMISE AND LAND WAS OWNED BY NTC , AND NOT BY THE ASSESSEE THEREFORE, THE STAMP DUTY EXPENSES INCURRED BY THE ASSESSEE ARE IN THE NATURE OF REVENUE EXPENDITURE. WE FIND THAT THE LD. CIT(A) SUSTAIN ED THE DISALLOWANCE OBSERVING AS UNDER: 4.2.1 GROUND NO. 3 OF APPEAL IS DIRECTED AGAINST DISALLOWING THE I.EASE DEED REGISTRAT ION CHARGES OF RS. 12,08.861 /' - . THE ASSESSEE COMPANY HAD BOOKED EXPENSES ON ACCOUNT OF LEASE DEED REGISTRATION CHARGES AMOUNTING TO RS. 12,08,861/ - IN THE P&L ACCOUNT. AO OBSERVED FROM SCHEDULE 21 OF THE NOTES ON ACCOUNTS THAT 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/ - WHICH IS RECOVERABLE FROM THE STRATEGIC PARTNER M/S ALOK INDUSTRIES LTD. AS PER SHARE SUBSCRIPTION AND SHAREHOLDERS AGREEMENT AND THE SAME IS TO BE SHOWN AS CAPITAL RESERVE. THEREFORE, AO HELD THAT THE SAME CANNOT BE CLAIMED AS REVENUE EXPENDITURE. THE ABOVE AMOUNT WAS STAMP DUTY' RAISED BY COLLECTOR OL STAMPS, MUMBAI WHICH WAS AMORTIZED BY APPELLANT COMPANY IN 30 YEARS OF THE LEASE PERIOD AND EXPENDITURE AMOUNTING TO RS. 12,08,861/' - WAS CLAIMED ON THIS ACCOUNT DURING THE YEAR UNDER CONSIDERATION. THEREFORE, THE SAME IS DISALLOWED AND ADDED BACK BY THE AO TO THE INCOME OF THE ASSESSEE COMPANY. 4.2.2 SCHEDULE 21 OF THE NOTES ON ACCOUNTS FORMI NG PART OF THE BALANCE SHEET IN AUDITOR S REPORT SAYS FOLLOWING ABOUT CONTINGENT LIABILITY AT SI. 8 & 9 OF THE NOTES ON ACCOUNTS : - 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 7 ITA NO. 6354/DEL/2014 AGREEMENT EXECUTED BETWEEN THE NTC LTD. AND ALOK INDUSTRIES LTD. THE AMOUNT OF THE STAMP DUTY WILL BRING IN BY THE 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 STRATEGI C PARTNERS M/S. ALOK INDUSTRIES LTD. AS PER SHARE SUBSCRIPTION AND SHAREHOLDERS AGREEMENT THE SAME WILL BE SHOWN AS CAPITAL RESERVE. FURTHER, THE TRIPARTITE SHA RES SUBSCRIPTION AND SHAREHOLDERS AGREEMENT BETWEEN NATIONAL TEXTILE CORPORATION LTD., ALOK IND USTRIES LTD. (STRATEGIC PARTNER) AND THE APPELLANT COMPANY EXECUTED ON 20.11.2007 AT CLAUSE 4.6(II) IN PAGE 13 CONTAINS THE FOLLOWING ARTICLE: - (II) THE STRATEGIC PARTNER SHALL SUBSCRIBE TO THE STRATEGIC PARTNER SHARES, WHICH SHALL CONSTITUTE 49% OF THE ISSUED, SUBSCRIBED AND PAID UP EQUITY 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 (RUPEE ONE HUNDRED AND TWELVE AND PAISE 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 HELD BY NTC. THE STRATEGIC PARTNER'S SHARES SUBSCRIPTION AMOUNT SHALL BE PAID BY TH E STRATEGIC PARTNER TO THE COMPANY BY WAY OF DEMAND DRAFT OR BANKER CHEQUE ISSUED BY A NATIONALIZED BANK AND SHALL BE PAYABLE AT PAT AT NEW DELHI. IT IS CLARIFIED THAT ALL GOVERNMENT AND/OR STATUTORY DUTIES, STAMP DUTIES, CESSES, LIABILITIES PAYABLE BY THE COMPANY IN REGARD TO (HE COMPLETION OF THE TRANSACTION CONTEMPLATED UNDER THE UNDERTAKING TRANSFER AGREEMENT AND THE LEASE DEED SHALL HE SOLELY BORNE BY THE STRATEGIC PARTNER AND THE STRATEGIC PARTNER WILL BRING IN ADDITIONAL AMOUNT INTO ME COMPANY FOR MA KING SUCH PAYMENTS WHICH SHALL BE CONSIDERED AS SHARE PREMIUM FOR SUBSCRIBING TO THE STRATEGIC PARTNER SHARES IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT. TO THIS EFFECT THE COMPANY SHALL PRIOR TO THE CLOSING DATE SUBMIT COPIES OF THE UND ERTAKING TRANSFER AGREEMENT AND THE LEASE DEED TO TIRE APPROPRIATE GOVERNMENTAL AUTHORITIES FOR ADJUDICATING THE AMOUNT OF STATUTORY / STAMP DUTY, CESSES, STATUTORY / REGISTRATION FEES, IF ANY, WHICH SHALL HE PAYABLE BY THE COMPANY IN THIS REGARD.' 8 ITA NO. 6354/DEL/2014 FROM THE ABOVE ARTICLE IN THE AGREEMENT IT IS CIEAR THAT ALL GOVERNMENT AND / OR STATUTORY DUTIES, STAMP DUTIES, CESS, LIABILITY PAYABLE BY THE APPELLANT COMPANY IN REGARD TO THE COMPLETION OF TRANSACTION AND LEASE DEED SHALL BE SOLELY BORNE BY THE STRATEGIC PA RTNER M/S ALOK INDUSTRY LTD. WHICH, SHALL BE CONSIDERED AS SHARE PREMIUM FOR SUBSCRIBING TO STRATEGIC PARTNER SHARES. IN VIEW 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 SH ALL ACCRUE M THE LANDS OF THE STRATEGIC PARTNER M/S ALOK INDUSTRY LTD. BECAUSE THE TARNS OF AGREEMENT CLEARLY SAYS THAT ALL SUCH GOVERNMENT AND STATUTORY DUTIES PAYABLE BY THE APPELLANT COMPANY SHALL BE SOLELY BORNE BY THE STRATEGIC PARTNER. THEREFORE, NO LIABILITY ARISES IN THE HANDS OF THE APPELLANT COMPANY ON ACCOUNT OF THE STAMP DUTY PAID/PAYABLE. IN VIEW OF THE ABOVE, THE AMORTISED AMOUNT OF RS. 12,08,861/ - DEBITED IN THE P&L ACCOUNT OF THE ASSESSEE, IS NOT ALLOWABLE AS REVENUE EXPENDITURE IN THE HANDS OF THE ASSESSEE. AS SUCH, THE DISALLOWANCE MADE BY THE AO IS SUSTAINED. THE APPEAL FAILS IN THIS GROUND. 5.4 THE LD. CI T(A) HAS REFERRED TO THE CLAUSE 4.6(II) OF THE SHARES SUBSCRIPTION AND SHAREHOLDER AGREEMENT ENTERED AMONG, M/S NTC, M/S ALOK INDUSTRIES LIMITED (STRATEGIC PARTNER) AND THE ASSESSEE COMPANY. THIS AGREEMENT HAS CLEARLY SPECIFIED THAT EXPENSES ON STAMP DUTY AND OTHER CHARGES WERE TO BE BORNE BY THE STRATEGIC PARTNER AND SAID ADDITIONAL AMOUNT WAS TO BE BROUGHT INTO THE ASSESSEE CO MPANY BY WAY OF SHARE PREMIUM. THE ASSESSEE ALSO CREDITED THE SAID AMOUNT INTO THE RESERVES OF THE COMPANY. IN OUR OPINION, THE STRATEGIC PARTNER ITSELF HAS BROUGHT THE SAID AMOUNT AS PART OF CAPITAL CONTRIBUTION AND NOT AS REIMBURSEMENT OF REVENUE EXPENDI TURE. THE EXPENDITURE INCURRED ON STAMP DUTY AND LEASE REGISTRATION CHARGES ARE EVIDENTLY ARE OF ENDURING NATURE IN INSTANT TRANSACTION THAT TOO ARE BORNE BY THE STRATEGIC PARTNER AND THUS THE ASSESSEE IS NOT ENTITLED FOR CLAIMING THE SAME AS REVENUE EXPEN DITURE. THE ORDER OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE IS WELL REASONED AND WE DO NOT FIND 9 ITA NO. 6354/DEL/2014 ANY ERROR IN THE SAME, ACCORDINGLY , WE UPHOLD THE SAME. THE GROUND NO. 2 OF THE APPEAL OF THE ASSESSEE IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 4 T H APRIL, 2019. S D / - S D / - [ BHAVNESH SAINI ] [O.P. KANT] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 4 T H APRIL , 2019 . RK / - [D.T.D.S] COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI