Office on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2015 Is there is any case law to prove this?

Mr. X, Director of Co. XYZ Pvt. Ltd. has made a simple rent
agreement with the Landlord in his own name. But the place is utilized
by the Co. Can the Co. claim the rent expense in its books of accounts?
If no, then suggest some other way by which the rent expense can be
claimed. Is it mandatory to make a proper Leave and License
Agreement between Mr. X and the Landlord?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 February 2015 if agreement is not with compapany then no rent paid shall be allowed when ao comes to knows about this

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2015 The resolution is passed to give effect that, the premises is used by company and rent is also paid by company only. then?????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 February 2015 if it is paid by company then ao may argue why the agreement is not in name of co as a party to agreement?

so in this case you can claim the rent paid but then surely while making assessment thnis question shall be raised?

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