Tribunal grants relief to assessee on disallowed payments to tenants.

The Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal. Relief was granted on the disallowed payments to tenants, and the CIT(A)'s decisions on other issues were upheld. The order was pronounced on 20th December 2017.

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Issues Involved:
1. Addition on account of disallowance of moneys paid to the confirming party Rs. 1,15,00,000.
2. Disallowance of payments to tenants.
3. Disallowance of commission payments claimed at Rs. 20,05,000.
4. Disallowance of indexed cost of acquisition.

Issue-wise Detailed Analysis:

1. Addition on account of disallowance of moneys paid to the confirming party Rs. 1,15,00,000:
The assessee entered into an agreement of sale cum GPA with M/s. Emami Nirman Pvt. Ltd. for Rs. 4,01,04,000, which was the amount received by her. The property was later sold by M/s. Emami Nirman Pvt. Ltd. as GPA holder to M/s. Emami Constructions Pvt. Ltd. for Rs. 5,16,04,000. The AO included the difference of Rs. 1,15,00,000 as part of the assessee's sale consideration. However, the CIT(A) deleted this addition, stating that the net sale consideration received by the assessee was Rs. 4,01,04,000 and the difference was accounted for by M/s. Emami Nirman Pvt. Ltd. The CIT(A) emphasized that the amount not received by the assessee cannot be considered as her sale consideration. The Revenue's appeal on this issue was rejected.

2. Disallowance of payments to tenants:
The assessee claimed Rs. 50 Lakhs as expenses for tenant eviction, which the AO disallowed due to lack of verification of the parties. The CIT(A) upheld the disallowance, stating that the possession was given in July 2007 and there was no indication of tenant disputes at that time. However, the Tribunal found that the existence of tenants was not in dispute and the payments were made through cheques and bank withdrawals. The Tribunal reversed the CIT(A)'s decision, allowing the claim as a deductible expense under Section 48(i).

3. Disallowance of commission payments claimed at Rs. 20,05,000:
The AO disallowed the commission payments due to un-served summons to the recipients and lack of established services. The CIT(A) allowed the claim after verifying the payments through banking channels and confirming that the amounts were offered for tax by the recipients. The Tribunal upheld the CIT(A)'s decision, noting that the payments were made through the bank and were related to the sale transaction.

4. Disallowance of indexed cost of acquisition:
The assessee claimed Rs. 91,85,357 as the indexed cost of acquisition based on a valuation report. The AO disallowed the claim, allowing only Rs. 4,50,300 for stamp duty paid. The CIT(A) allowed the claim, noting that the property was acquired in 1978 and the valuation report was not rejected by the AO. However, the CIT(A) adjusted the valuation for an arithmetical mistake, reducing the indexed cost to Rs. 81,52,307. The Tribunal upheld the CIT(A)'s decision, confirming the reworked indexed cost.

Conclusion:
The Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal, providing relief on the disallowed payments to tenants and upholding the CIT(A)'s decisions on the other issues. The order was pronounced on 20th December 2017.

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