2001 (9) TMI 31

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.... J.-A sum of Rs. 25,000 paid by the assessee to a purchaser of a property, which it had sold eight years earlier, has been disallowed as not forming part of its allowable business expenditure. The assessee's contention was that the payment was necessary even though it was voluntary, as the assessee had to sell the property free of encumbrances. No material was placed before the assessing author....

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....how that its title to the property itself was defective in any way and that, therefore, there was a duty to reimburse the purchaser any part of the amount that the purchaser had paid to any person who had a right in the property which was enforceable. Learned counsel for the assessee argued before us that the payment can be sustained on the ground that the assessee was required to make that pay....