Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 251 - AT - Income TaxNature of expenses – Amount being compensatory in nature and not penal – Payment made for delay in handing over of possession of properties – Held that:- The payment made to its customers was in the form of compensation which was paid to its customers for delay in handing over the possession of properties - The liability to pay such compensation arose in the course of business of assessee - This type of compensation is generally prevalent in the industries and builders generally offer some amount as compensation against delay in handing over the properties - CIT(A) has very rightly held the nature of payment as compensatory and not penal - Relying upon CIT v. Jaya Ram Metal Industries [2006 (7) TMI 135 - KARNATAKA High Court] – the order of the CIT(A) is upheld – Decided against Revenue.
|