Compensation to land-owners cannot be allowed merely based on Bank Statement

Home Developers Vs DCIT (ITAT Pune) On perusal of the agreement, it was observed that the assessee paid Rs.36,09,000/- being compensation paid to land-owners, for allotting less than agreed constructed area, as per development agreement. The AO asked the assessee to submit the supporting documentary evidences viz., confirmation from the parties, books of accounts of their parties etc., in order to substantiate the genuineness of payment. The assessee furnished certain details and claimed that the payments made through banking channel. Not satisfied with the details so furnished and observing...