Compensation for Cancelled Land Sale Allowed as It Was for Commercial Expediency: ITAT Chennai

ACIT Vs Annai Builders Real Estate Private Limited (ITAT Chennai) Closing Stock Addition Deleted Because Compensation Did Not Enhance Land Value; Cost Over-Run Deduction Allowed Because Liability Had Already Crystallized; Arbitration Proceedings Cannot Convert Actual Project Costs into Contingent Liabilities: ITAT Chennai. The Chennai Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal and dismissed the Revenue’s appeal in a dispute involving multiple additions and disallowances arising from assessment proceedings for AY 2011-12. The issues related to closing stock valuation...