Practical Accounts And Taxation
Note:Image should be of size 502px * 502px
Rental advance adjustment for evacuating rental property before lock in period. Can it be treated as a business loss ?
In a recent case where the assessee was disallowed the claim of ‘write off of the rent deposit for building’. Assessee went to ITAT Hyderabad, contending that Assessing officer wrongly interpreted said claim as write off of the security deposit. In real it’s a manner of settlement of rent payable by the assesee towards unexpired lock- in period of lease.
Tribunal held that, when rent advance become unrecoverable it becomes business loss, in given case rent advance is not unrecoverable but it was adjusted towards agreed rent lock-in period as per the agreement between the parties, therefore negotiated settlement for the lock in period can only be treated as a business loss as the premises was taken on rent for the purpose of the business.
100% Practical and job oriented courses on Complete Accounts upto finalization, Complete Direct Indirect Taxation GST, TDS, ITR filing, SAP ERP, Payroll Mgmt, Excel VBA Macros, and a lot more
Visit us : https://ibajobs.in/
For demo lectures sign up on https://livetraining.ibajobs.in/ call or whatsapp 9820337194
Institute of Business Applications
‘Believe in Practical Training’