Commissioner Of Income Tax, Cochin vs M/S. Travancore Cochin

The Supreme Court held that under the Income Tax Act, the deduction for lease rent can only be claimed in the assessment year when the dispute regarding the lease rent has been resolved, not when it was initially fixed. The Court found that the respondent's claim for deduction in the Assessment Year 1992-93 was valid as the issue was settled by the State on 07.11.1991. The Court upheld the Tribunal's decision allowing the deduction, thereby reversing the High Court's ruling.