2013 (5) TMI 1056

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..... 3. In the assessee's appeal the assessee has raised the following grounds :- "1. That the order of the Learned Commissioner of Income Tax (Appeals)-XII, Kolkata confirming the additions and/or disallowances made by the Learned Assessing Officer is contrary to the law and facts of the case. 2. That on the facts brought on record the Learned Commissioner (Appeal) ought to have treated the sale of land incomplete till the vacant possession of land was transferred to purchaser amounting to Rs.1,94,25,000/-. 3. That on the facts brought on record the Learned Commissioner (Appeal)ought to have treated the receipt of Rs.1,94,25,000/- as security deposit against sale till the vacant possession of land was handed over. 4. That on the f....

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.... the assessee for recovery of the cost of the property along with the interest thereon as also the stamp duty and legal charges. It was the submission that in the course of assessment the AO disallowed the total amount of Rs.1,23,40,000/- on account of the tenancy vacancy charges being the tenancy vacancy charges paid to the five tenants with whom the assessee had entered into agreement for vacating the immovable property of the assessee. It was the submission that the AO disallowed the said amount of Rs.1,23,40,000/- on the ground that the expenses had not crystallized on 31.03.2006 and only on vacating of the plots of land by the respective tenants the expenditure on this account would be crystallized. It was the submission by the ld. AR ....

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....to the purchaser. It was the submission that the addition made by the AO by disallowing the tenancy vacation charges of Rs.1,23,0,000/- was liable to be reversed or in the alternative on the same lines as the AO has treated the tenancy vacation charges as contingent the sale consideration in respect of the property which was tenanted and in relation to which the tenancy vacation charges has been claimed was liable to be considered as contingent and the total consideration executed form the assessee's profit and loss account. 5. In reply the ld DR submitted that immediately on the execution of the indenture of the conveyance which clearly refer to the handing over of the possession the transfer was complete. It was the submission that the t....

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....acant 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 agreement with the tenants for vacating the premises. The agreement with the tenants dated 20th February, 2006 and the agreements talk of handing over post dated cheques dated 31.03.2009, being the last month before which tenants have to vacate t....