ITAT Allows Rs. 6.47 Crore Lease Rent Expense as Deduction Citing Lessee’s Right to Claim Depreciation

The ITAT (Income Tax Appellate Tribunal) allowed a deduction of ₹6.47 crore towards lease rent expense, citing the lessee's right to claim depreciation on the leasehold improvements. The tribunal recognized that even though the assessee was a lessee, the significant investments made in leasehold improvements entitled them to claim depreciation, and consequently, the lease rent paid for the asset was a valid business expense.