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2017 (9) TMI 1920 - AT - Income TaxCapital gain computation - JDA agreement - HELD THAT:- There is no dispute that as per JDA entered into between the assessee company and Shri Ramesh, Ramesh was required to bear the expenditure incurred to make the schedule land usable for development and even if such expenses is paid by the other party, the same is to be debited to his account. In view of this clear understanding as per JDA, it cannot be accepted that this expenditure of ₹ 65 lakhs is because of business exigency because whatever may be the dispute between Shri Ramesh and his sister, it was to be settled by Shri Ramesh at his own cost and such expenses is not required to be borne by the assessee company. We are of the considered opinion that the order of CIT(A) is not sustainable because these paras of JDA were not considered by CIT(A) at all. Regarding various judgments cited by ld. AR of assessee, we would like to observe that in view of this fact that the assessee had not been able to establish that the payment in question was on account of business exigency and it was required to be borne by the assessee company and not by Shri Ramesh, none of the judgments cited by ld. AR of assessee is relevant in the present case of the assessee. We therefore reverse the order of CIT(A) and restore that of AO - Appeal filed by the revenue is allowed.
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