Compensation paid by developers to allottees of flats for surrendering their rights is allowable exp.: HC

IT : Compensation paid by assessee developer to allottees of commercial spaces for surrender of their rights therein could not be said to be disallowable on ground of such payment having been made for 'extraneous considerations.' Assessee had a plausible explanation for making such payment of compensation to protect its 'business interests.' While it is true that there was no 'contractual obligation' to make payment,

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