https://www.taxtmi.com/caselaws?id=759195 ITAT Hyderabad upheld CIT's revision u/s 263 regarding termination charges and liquidated damages. The tribunal found AO failed to conduct proper inquiry before allowing expenditure as revenue, making the order erroneous and prejudicial to revenue. Rs. 340.45 crores paid under Asset Purchase Agreement was held as capital expenditure, not termination charges. Rs. 6.19 crores liquidated damages paid to protect another entity's business interests was disallowed u/s 37 as not incurred wholly and exclusively for assessee's business purpose. Appeal dismissed. en-us Mon, 12 Aug 2024 00:00:00 +0530 Thu, 26 Sep 2024 08:15:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759195 ITAT Hyderabad upheld CIT's revision u/s 263 regarding termination charges and liquidated damages. The tribunal found AO failed to conduct proper inquiry before allowing expenditure as revenue, making the order erroneous and prejudicial to revenue. Rs. 340.45 crores paid under Asset Purchase Agreement was held as capital expenditure, not termination charges. Rs. 6.19 crores liquidated damages paid to protect another entity's business interests was disallowed u/s 37 as not incurred wholly and exclusively for assessee's business purpose. Appeal dismissed. Case-Laws Income Tax Mon, 12 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759195