2012 (2) TMI 325

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....f the State with the prior approval or on direction of the State Government , f or carrying out of the purposes of this act as per Section 28 of the Punjab Regional & Town Planning & Development Act , 1995. The applicant has been maintaining regular books of account , which were subject to audit and the return had been filed on the basis of audited books of account . 2. That during the year under consideration, the appellant has made contribution of Rs.60.00 crores for construction of International Airport at Mohali on direct ion of the State Government to fulfill the objects of the authority. 3. The AO has disallowed the expenditure of Rs.60.00 crores as contributed f or construction of International Airport at Mohali on the grounds ....

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....ment and our object is development and better planning and not to make prof it only. I t is a well set t led law that as long as payment made is not by way of penalty for infraction of any law. The expenditure is an allowable deduction. The very existence of the GLADA depends on acceptance/following of direction of the State Government for better planning and Development of any area of the State. Rather , if GLADA refuses to accept/follow the di rec t ions of the State Government f or incurring any expenditure f or the better planning and development of any area of the State, it will be violation of the objects of the Authority. " 2. The assessee also filed an affidavit , wherein it has been deposed that the assessee had filed appeal on ....