TaxTMI 
TaxTMI 
2007 (7) TMI 292
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....ed the following substantial questions of law : "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the compensation amount paid by the assessee to the land owners towards the undivided share of land which was not sold is to be treated as a business expenditure ? 2. Whether, on the facts and circumstances of the case, the Tribunal had enough material to hold and was right in holding that the agreement with the land owners for payment of the compensation was among the seized documents ? 3. Whether, on the facts and circumstances of the case, the Tribunal was right in accepting the assessee's version that the documents were with the Department, and allowing the appeal, without giving an opp....
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....x (Appeals). Hence, the present tax case by the Revenue. 3. Learned senior standing counsel appearing for the Revenue submitted that the amount paid by the assessee is not in the course of business and hence the Assessing Officer rightly refused to treat the compensation as business expenditure. 4. In spite of the notice served on the respondent, there is no representation on behalf of the respondent. 5. Heard counsel. The assessee entered into an agreement with the land owners, who are ten in number, for developing the land by constructing flats at 18, Halls Road, Kilpauk, Chennai. It was agreed upon to develop their shares of land at an agreed amount. However, on completion of the project, it was found that the land belonging to ....
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....ads are only 12 metres and 19.15 metres wide, but this standard was done away with. It was also mentioned in the news item that it would cause great inconvenience to the other residents and would also pose a danger to the occupants. A similar news was also published in Malai Malar dated July 13, 1989. At that time, there was a change in the Government and hence the assessee thought it proper to restrict the construction to the guidelines of the Madras Metropolitan Development Authority. By that time, the agreements were already entered into with the flat owners regarding the price of the land and the price of the building and hence no extra amount could be charged to them. In this case, the assessee planned to construct 24 flats by obtainin....
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....ts and property from expropriation, coercive process or assertion of hostile title ; it may also comprehend payment of statutory dues and taxes imposed as a precondition to commence or for carrying on of a business ; it may comprehend many other acts incidental to the carrying on of a business. However, wide the meaning of the expression may be, its limits are implicit in it. The purpose shall be for the purpose of the business, that is to say, the expenditure incurred shall be for the carrying on of the business and the assessee shall incur it in his capacity as a person carrying on the business." 6. In the case of S. A. Builders Ltd. v. CIT (Appeals) [2007] 288 ITR 1, the Supreme Court had given certain guidelines as to how the Revenue....