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2020 (11) TMI 825 - AT - Income TaxAllowable business expenses OR capital expenditure - payment of forfeited amount earlier received by the assessee - HELD THAT:- The above claim of the assessee on account of repayment of forfeited amount earlier received by the assessee, taxed duly in AY 15-16, subsequently, those persons received forfeited amount from assessee, booked the real estate during the year and therefore, forfeited amount was returned by the assessee is definitely an expenditure which springs from the business of the assessee of the real estate. The above expenditure has been incurred by the assessee wholly and exclusively for the purpose of booking of a real estate, cannot be held to be a capital expenditure. Same forfeited amount received from the same person has already been taxed for AY 2015-16, when the same is returned during the current year on booking of the flat, cannot be held to be capital expenditure. When the said sum was received, the revenue taxed as revenue receipt and when the same sum is refunded the revenue treated it as a capital expenditure. Thus blowing hot and cold in the same breath by revenue is not acceptable. Accordingly, reversing the order of the lower authorities the ld AO is directed to delete the disallowance expenditure incurred by the assessee is wholly and exclusively incurred for the purpose of the business and it is not a capital expenditure.
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