Held that during the financial year 2007-08, the assessee had requirement to purchase contiguous piece of land for its housing project and had entered into memorandum of understanding with SBPL to provide contiguous piece of land which in turn it was to be acquired from various farmers and land owners. The memorandum of understanding clearly showed that there was an arrangement or understanding between SBPL and the land owners and SBPL was paid for assigning, relinquishing and transferring all its present and future rights in the land to be registered in the name of the assessee. Most importantly, all these payments were made in the financial year 2007-08. Now, the expenditure incurred in the AY. 2008-09 was disallowed in the AY. 2013-14 and that under section 37(1) of the Act. There was no basis for disallowance of payments and the cost with regard to the financial year 2007-08 (AY. 2008-09) in the AY. 2013-14. The Tribunal also held that the disallowance made by the Assessing Officer on protective basis under section 40(a)(ia) of the Act was also baseless because the payments made to the consolidators of land were for the purpose of renouncing right and interest in the land and the assessee and the consolidator were transacting on principal-to-principal basis and the payments could not be regarded as commission or brokerage. Therefore, the assessee could not be held liable to deduct tax at source in terms of section 194H of the Act. (AY. 2013-14)