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2010 (11) TMI 119 - AT - Income TaxDisallowance of deduction - wholly and exclusively in connection with transfer - sec. 48(i) of the Act - transfer of industrial plots could be registered only after getting "no objection" certificate from the GIDC, - the payment of non-use penalty of Rs. 21,80,640 was paid - In case plot/shed is not utilized within stipulated time limit extensions may be granted in genuine cases, subject to charging of non-utilization penalty at the rate of 1% for first year, thereafter 2% for the second, 3% for third year and at 4% for subsequent years of the prevailing allotment price for the said year - Held that: - The assessee has miserably failed to establish before the lower authorities and even before us that the said amount of penalty towards non-usage charges is an expenditure incurred wholly and exclusively in connection with transfer of two industrial plots allotted by GIDC to the assessee or is part of cost of improvement of the said two plots – Appeal is dismissed
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