Rainbow Promoters (P.) Ltd. v. ACIT (2022)95 ITR 232 (Delhi)(Trib)

S. 37(1) : Business expenditure-Additional payment to avoid litigation-Deduction not claimed-Disallowance is not warranted.

The Tribunal held that  an  additional payment being made to the seller of land or any of his relative or any other party post registration of sale deed to avoid litigation and to take peaceful possession and the Assessing officer disallowing the same, held that the deduction in respect of additional payment having not been claimed, disallowance could not be made. (AY.2006-07, 2007-08)