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2016 (2) TMI 411 - HC - Income TaxCompensation for loss suffered by CPT due to occupation of land in excess of what was demised - whether the aforesaid expenditure is an amount expended fully and exclusively for business purposes within the meaning of Section 37(1)? - Held that:- The payment was made to compensate the loss suffered by CPT due to occupation of land in excess of what was demised to the assessee. Therefore, the payment did not partake the character of penalty. The payment could not partake the character of a capital expenditure because contention of the CPT was that the prayer for lease of the land unauthorisedly occupied could not be examined before payment of the compensation. Therefore, the payment was altogether compensatory for the benefit already received by the assessee by user of the land which had or could have nothing to do with a grant of lease in future.- Decided in favour of the assessee
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