Compensation for delay in handing over possession of property is allowable as business expense

Beau Jhelum Traders and Developers Pvt Ltd Vs ACIT (ITAT Bangalore) ITAT Bangalore held that the compensation paid for delay in handing over of possession of the property is the liability that arose in the course of business of assessee and hence allowable as business expenditure. Facts- The assessee is a private limited company and said to be engaged in the business of construction of commercial building for the purposes of sale and letting out. For the year under consideration, it had filed return of income declaring total income of Rs.5,91,38,960/-. The return was selected for scrutiny and ...