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2023 (3) TMI 92 - AT - Income TaxAllowable expenses u/s 37/28 - Compensation for cancellation of booking of residential complex - Disallowance of expense incurred towards compensation u/s 37/28 - HELD THAT:- Customers approached the assessee for cancellation of booking and from Annexure-A, B & C it can be seen that the assessee by paying the limited compensation has made profit after entering into new transactions. Thus, the assessee made profit after paying minimum compensation to these three parties. The assessee has already given all the documentary evidences with respect to original buyers in respect of bank statement, Aadhar Card, PAN and confirmation from these buyers. The assessee has also given details of the new buyers of the said flat, bank statement, Sale Deed as well as the amount upon which the new transaction has taken into consideration. In fact, the flat was booked for Rs.35,50,000/- and the new transaction shows that the flat was sold for Rs.37,50,000/- by paying only Rs.18,00,000/- to the original buyer as the booking amount paid by the original buyer was Rs.16,00,000/- only. Thus, the assessee has made profit and it was business strategy for earning the profit. Assessing Officer as well as the CIT(A) never disputed the new transactions which has earned profit to the assessee. Therefore, the Assessing Officer as well as the CIT(A) was not justified in making the addition. Disallowing employee’s contribution towards PF u/s.36(1)(va) r.w.s. 2(24)(x) - HELD THAT:- AR submitted that the same is covered against the assessee vide decision of Hon’ble Apex Court in the case of CHECKMATE Services Pvt. Ltd. [2022 (10) TMI 617 - SUPREME COURT] Hence, ground no.2 is dismissed.
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