Eviction Charges Paid for clearing encroachments allowable as Business Expense

Orchid Foundations Pvt. Ltd Vs ITO (ITAT Chennai) The intended purchaser i.e., M/s SVC made efforts for clearing the encroachments and incurred expenditure of Rs.811.75 Lacs which were paid through banking channels. The details of payment as well as the bank statement and acknowledgement / receipts were already furnished to Ld. AO during the course of assessment proceedings. Subsequent to entering into sale agreements, the property was under continuous litigation since the erstwhile owners M/s. Adippalli Kandaswamy Chetty & Chenchu Venkatasubbu Guruvajamma Charities Association filed a cri...