Assessee entered into joint development agreement (JDA) with one M to develop a land-Assessee later entered into a compensation agreement with Maheesh Bhoopathi towards cancellation of said JDA.   Assessee found another business opportunity to develop a land which belonged to one Sunrise Reality & Leisure Pvt. Ltd. and assessee entered into an MoU with Sunrise Reality & Leisure Pvt. Ltd. to purchase its land.  The assessee paid compensation to Maheesh Bhoopathi and claimed as revenue expenditure.  Assessing Officer disallowed the claim, which was affirmed by the Tribunal. On appeal the Court held that since there was nexus between cancellation of JDA and execution of construction agreement, compensation paid the said expenditure is allowable as revenue expenditure. Followed S.A. Builders Ltd v. CIT (2007 288 ITR 1(SC), CIT v. Dalmia Cement (P) Ltd (2002) 254 ITR 377 (Delhi) (HC) (AY. 2008 09, 2009-10)