Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

Exp. incurred by builder on brokerage and commission on booking of properties allowable; SLP dismissed

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Brokerage expenses) - Assessee, a builder, incurred expenditure towards brokerage and commission - Assessing Officer disallowed said expenditure on ground that during relevant year conveyance of sale deeds were not executed - Tribunal, however, held that expenses incurred on brokerage and commission on booking of properties being a finance/selling expenses were allowable in full - High Court upheld Tribunal's order - Whether, on facts, SLP filed against order of High Court was to be dismissed - Held, yes[In favour of assessee]

Refer:[2020] 114 taxmann.com 98 (SC) in the case of
Principal Commissioner of Income Tax-3
v.
DLF Home Developers Ltd.

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