TaxTMI 
TaxTMI 
2023 (5) TMI 463
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....23,40,000/- by Ld. CIT(A) as made by the AO in the assessment framed u/s 143(3)/254/143(3) of the Act dated 11.03.2015 on account of "Tenancy Vacancy Charges". 3. Facts in brief are that this is the second round of appeal before the Tribunal. In the first round the Tribunal, vide order dated 23.05.2013 in ITA No. 1839/Kol/2012 for AY 2006-07, set aside the appeal of the assessee by restoring the case to the file of AO with the directions to verify the agreements entered into the assessee with the tenants for payment of compensation for vacating the property and since this being a company and following mercantile system of accounting , the said tenancy vacancy charges of Rs. 1,23,40,000/- were to be allowed accrual basis. The tribunal resto....
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.... of vacating the plots of land by the respective tenants the real expenditure would be crystallized. A perusal of the agreements entered into by the assessee with the purchasers clearly shows that it was the duty of the assessee to provide vacant possession of the purchasers by May, 2009. A perusal of the deed of declaration also clearly shows that if the vendor cannot give vacant possession the vendor would have to pay back the consideration to the purchaser along with the legal expenses including stamp duty and interest. On the basis of this deed of declaration the purchasers have purchased the property for the consideration of Rs. 1,94,25,000/-. Before entering into the indenture of conveyance itself the assessee has entered into an agre....
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....ore us shows that all the agreements entered into between the assessee and the tenants are not before us though the assessee has claimed the same has been filed before the AO. In the circumstances the issue of the expenses in relation to the tenancy vacation charges debited to the 'extent of Rs. 1,23,40,000/- is restored to the file of the AO to verify the agreements entered into by the assessee with the tenants. The AO is to examine whether the agreement have been entered into during the year, the AO shall examine the claim/as to whether the agreements are in relation to the land in question and the transactions in question. If the answer to both the issues are in the affirmative then the AO shall grant the assessee the benefit of the dedu....