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2023 (5) TMI 463 - ITAT KOLKATAAddition on account of “Tenancy Vacancy Charges” - HELD THAT:- As out of five parties, three have responded to the notices issued u/s 133(6) of the Act and admitted to have received the tenancy vacancy charges and only two do not respond. Since the assessee is a private limited company and following mercantile system of accounting, so the assessee has to be allowed these tenancy vacancy charges on accrual basis. The both the authorities below have not complied with the directions given by the Tribunal and simply made the addition on the ground that these payments could not be verified. In our considered view this is in complete violation of direction given by the tribunal vide order dated 23.05.2013. Non service of notice us 133(6) of the Act can not be a ground for non compliance of the tribunal direction. As examined the agreements with the tenants and also the suits filed by the purchaser in the court against the assessee. Therefore order we reverse the order of CIT(A) and direct the AO to allow tenancy vacancy charges to the assessee. Appeal of the assessee is allowed.
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