Compensation for Settlement of Encroachment on Property not allowable without Evidence

ACIT Vs Precision Realtors P. Ltd. (ITAT Delhi) A perusal of the sale deed show that the seller was the absolute owner and was in actual possession of the impugned property. Nowhere in the sale deed, there is a mention of encumbrance / encroachment in the impugned property. This fact has been completely ignored by the first appellate authority. In our considered view if there were no encroachment no encumbrances on the impugned property there should not be any reason why the payments were made by the assessee. Since the basic fact has not been appreciated by the first appellate authority we de...