Sec. 37(1) of the Income-tax Act, 1961 - Business expenditure - Revenue challenged the order of the Tribunal of upholding the findings of the CIT (A) whereby the addition made by the AO under section 14(A) read with Rule 8(D) (2) of the IT Rules 1962 was deleted. High Court dismissed the appeal of the revenue holding that ”The assessee is a company which is engaged in the business of real estate. The main object of the business of the company is development of real estate. It made a payment of Rs. 3.50 crores as advance to HDIL for purchase of land to construct commercial complex for the development of real estate. Since it did not make payment of the balance amount - for whatever reason, the advance given was forfeited. In this view of the matter, the advance given in the ordinary course of business has been rightly treated as loss incurred by the company. We are unable to find any material on record to suggest to the contrary. In view of the aforesaid factual findings, the treatment given to the forfeiture of advance Rs. 3.50 crores could not be categorised as capital expenditure“. - PR. CIT V/s FRONTINER LAND DEVELOPMENT (P.) LTD. - [2020] 270 TAXMAN 063 (DELHI)