Amount paid as compensation to related company in respect of vacation of property was allowable business expenditure.

Peerless General Finance & Investment Co. Ltd. Vs DCIT (ITAT Kolkata) Conclusion: Amount paid as compensation by assessee to related company in respect of vacation of property occupied by that company was made after much negotiation and it was thus in accordance with business of assessee and therefore, the same was allowable. Held:  During the assessment proceedings, AO noted that assessee, in its profit and loss account had debited an amount under sub head ‘other expenditure’. The party­ wise details were sought. On perusals of which it was noted by AO that assessee had paid...