Sum paid in the course of Land Business & Forfeited by land owners allowable as Business expense

Zebina Real Estate Pvt. Ltd. Vs ACIT (ITAT Delhi) Assessing the legitimacy of Rs. 10 lakh written off by Zebina Real Estate Pvt. Ltd. Explore ITAT Delhi’s decision favoring the business expenditure claim. We find that it is undisputed that assessee was engaged in the purchase and sale of land through brokers. In one such dealing Sh. Jagdish Nain had paid a sum of Rs. 10 lacs to the land owners on behalf of the assessee. The said deal did not materialize as no agreements could be reached regarding the rate of sale. The land owners to whom a sum of Rs. 10 lacs was paid, forfeited the same ...