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2018 (2) TMI 714 - AT - Income TaxAllowable busniss expenditure - amount paid in lieu of the shares of the litigating parties - Held that:- The declaration cum indemnity of all the recipients/concerned parties is available. We have also perused the orders from Hon'ble High Court of Delhi and Bombay, which clearly indicates that the assessee duly paid the impugned amounts in lieu of the shares of the litigating parties and the expenses were incurred to safeguard the business interest of the assessee, which is permissible under the Act. No evidence in any manner has been adduced by the Revenue contradicting the factual finding recorded by the Ld. Commissioner of Income Tax (Appeal). Assessee entered into a development agreement on 29/10/2004 with Seth Industries Pvt. Ltd. at a consideration of ₹ 14.50 croers followed by supplemental agreement dated 22/02/2006 and deed of conveyance made on 08/11/2006 at agreed price of ₹ 23,04,80,219/- and the amount of ₹ 6.50 crores was made to the shareholders in respect of which supporting documents have been duly filed. It is evidently clear that the payment of ₹ 6.50 crores was made to these shareholders of Seth Industries Pvt. Ltd. for withdrawal of litigations and suits filed before Hon'ble High Court of Delhi and Bombay, so that the development of the said property could be smoothly undertaken without any hindrance, consequently, the expenditure was incurred to protect the business interest of the assessee and further to safeguard the assessee itself for further losses, resultantly, we find no infirmity in the order of the First Appellate Authority. The same is affirmed. The appeal of the Revenue is, therefore, dismissed.
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