Site Encroachment Charges and Landowner Payments Allowed as Business Expenses Under Income Tax Act Section 37(1.

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....Allowable business expenses u/s 37(1) - site encroachment charges, land owners’ payment etc. - Merely because the evictees did not have PAN or not assessed to tax, the same would not jeopardize the claim of the assessee. M/s SVC responded to notice u/s 133(6) and confirmed the payments. There is nothing adverse on record except for mere allegation that the transaction appeared to be collusive one and the bona-fides of the transactions were doubtful. There is no concrete material to substantiate this conclusion. - The claim was allowable as business expenditure. - AT....