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2014 (12) TMI 714 - AT - Income TaxDeletion of compensation charges – Capital expenses or revenue expenses – Held that:- The past position on identical claims can be said to be covered in assessee’s favour - considering this past position the CIT(A) has arrived at a finding, however it is seen that the CIT(A) has been swayed by the past legal position on the issue and unfortunately has not cared to consider the same on facts - Simply because the past practice demonstrates that the assessee in its nature of business may require to compensate the parties to the extent the parties from whom advances have been received could not fulfill the commitment warranting payment of compensation does not mean that all claims without verification have to be allowed - as per assessee’s submissions only “some of the documents” relatable to the issue were made available to the CIT(A) based on which finding has been arrived at – CIT(A) held that assessee also filed a detail of payment made by it as compensation and also placed on record copies of some of the documents executed for payment of compensation and cancellation of bookings made by it – the approach of the CIT(A) on facts cannot be upheld - CIT(A) is necessarily required to look at the complete evidence necessary for arriving at a conclusion – thus, the matter is remitted back to the CIT(A) - assessee is granted liberty to place all necessary evidences before the CIT(A) in support of its claim as the same evidently has not been done – Decided in favour of revenue.
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