DIPAK KUMAR SEN, J.

( 1 ) GOBIND Sugar Mills Ltd. , the assessee, had been carrying on business of running a sugar mill. Under a deed of lease executed on the 30th August, 1969, it obtained a lease of another sugar factory at Matihari in consideration of an annual rental of not less than Rs. 25 lakhs for a period of five years. For the execution of the said deed, the assessee had to incur some expenditure on account of stamp fees, registration charges, solicitor's fees, etc. , which aggregated Rs. 54,824. In the assessment year 1971-72, the relevant previous year ending on the 30th June, 1970, the assessee in its assessment to income-tax claimed deduction of the said amount as a revenue expenditure incurred for the purpose of business. The ITO rejected the said claim on the ground that the same had been incurred for acquiring the right to run a factory on lease and, therefore, the expenditure was of a capital nature.

( 2 ) BEING aggrieved, the assessee preferred an appeal. The AAC, following a decision of the Supreme Court in the case of India Cements Ltd. v. CIT [1966] 60 ITR 52, held that the expenditure in question had been incurred by the assessee for the use of a property un

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