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2014 (9) TMI 203 - ITAT BANGALORECompensation payable disallowed – Existence of compensation agreement – Nexus between expenses and project - Held that:- None of the documents between the parties, except a casual reference in the compensation agreement dated 14.7.2005, speak about the nexus between the property of Bhupathi and the NLI property - Even in the compensation agreement dated 14.7.2005, there is a reference to the property of Bhupathi having been considered for development of residential complex by ITC, but since the place was small, the same was given up - No evidence has been brought on record by the assessee to show that the property of Bhupathi was first identified by ITC for development of residential complex - There is nothing on record to show that SRLPL imposed a condition for sale of the property of SRLPL to the assessee that the assessee should arrange for sale of the property of Bhupathi to SRLPL - the property of Bhupathi was not sold to SRLPL or its nominee - The property was ultimately sold to a third party - There is no basis whatsoever for fixation of compensation of ₹ 8.5 crores - There is nothing on record to show as to how the same was quantified, who committed the breach and as to whether any claim was made by Bhupathi in this regard. Mr. Mahesh Bhupathi agreed that his property would be sold in favour of the nominees of the Second Party - the agreement cannot be said to be a compensation agreement entered into for breach of the agreement dated 25.9.2004 - in none of the registered documents by which the property of SRLPL was conveyed, is there a reference to the agreement between the assessee and Bhupathi - the conclusion of the revenue authorities that the payment of ₹ 8.5 crores has no nexus with NLI property is correct and therefore has to be upheld - the plea of commercial expediency in making the payment to Mr. Mahesh Bhupathi for NLI property cannot also be accepted – the order of the CIT(A) is upheld – Decided against Assessee.
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