Summary
The Court remanded a lease-rent deduction dispute because the Revenue newly asserted that the rent liability was statutory rather than contractual. That characterisation and its effect on the year of deduction presented mixed questions of fact and law not decided below. The assessee required an opportunity to produce documents and answer the contention; the Supreme Court did not decide the deduction’s merits.
Issues
- Whether the statutory or contractual character of the lease liability could be decided for the first time in the Supreme Court.
- Which forum should determine the resulting deduction dispute on a proper factual record.
Held
- The nature of fixation, payment and recovery of rent could bear on the appropriate assessment year, but the newly raised characterisation involved facts and legal issues not resolved by the authorities below. (¶ 13–15)
- As the final fact-finding authority, the Tribunal should consider the parties’ documents and decide the appeal afresh. No conclusion was expressed on whether the rent was statutory or contractual or on the proper deduction year. (¶ 16–20)
Result
Revenue appeal allowed; High Court and Tribunal orders set aside. Matter remanded to the Cochin Tribunal with document-filing opportunity and a six-month disposal direction from appearance.