Dismissing the appeal of the revenue the Tribunal held that ; Payment to its shareholders for withdrawal of winding up petition against company in order to clear title of property is held to be allowable as business expenditure as the payment was made to protect business interest and to safe guard from losses.( AY. 2008 -09)
DCIT v. Cowtown Land Development (P.) Ltd. (2018) 168 ITD 705 (Mum) (Trib.)
S.37(1): Business expenditure –Development rights – Payment to its shareholders for withdrawal of winding up petition against company in order to clear title of property is held to be allowable as business expenditure .