In Brief
The Revenue appealed against a High Court decision upholding an assessee's claim to deduct disputed lease rent in the assessment year when the dispute was settled (1992–93) rather than when the rent was initially fixed (1989–90). The Revenue contended the liability was statutory and thus deductible only in 1989–90. The Supreme Court found this argument—raised for the first time before it—involved a mixed question of fact and law regarding whether the rent was statutory or contractual in nature. The assessee had no prior opportunity to rebut it. The Court remanded the case to the Tribunal for fresh adjudication to ensure fairness and proper factual determination.
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