Liquidated damages to be allowed in year of payment & not in year of agreement to pay

INCOME TAX : Where assessee entered into an agreement dated 5-3-2010 with a company to pay liquidated damages to said company for cancellation of contract in three instalments, and last instalment was paid on 20-5-2010, deduction in respect entire amount of liquidated damages paid by assessee was to be allowed in assessment year 2011-12

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