Court held that the amount paid to clear the title of the property is allowable as deduction. The court also held that the Tribunal has no power to re-write the agreement and if the parties have modified the agreement, the same could not have been ignored when the amount was paid to the parties. (ITA No. 136 of 2018 dt. 18-2-2021)
Maya Ventures Pvt. Ltd. v. ACIT (2021) The Chamber’s Journal-April-P. 99 (Karn.)(HC)
S. 37(1) : Business expenditure-Estate developer-Payment made to settle the dispute to clear the title-Joint venture agreement-Tribunal has no power to rewrite the agreement-Allowable as deduction.