Compensation to Developer on Termination of JDA cannot be claimed as ‘Project Expenditure’: ITAT upholds Addition [Read Order]

Compensation - Developer - Termination of JDA - Project Expenditure - ITAT - Taxscan

The Chennai bench of the ITAT has held that the amount of compensation paid to the developer on termination of a Joint Development Agreement cannot be claimed as “Project Expenditure” under the provisions of the Income Tax Act, 1961. The assessee, M/s Ankur Foundation Pvt Ltd, has paid Rs.200 Lacs as compensation towards one property…

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