TMI Blog2023 (5) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete 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. - I.T.A. No. 49/Kol/2023 - - - Dated:- 5-4-2023 - Shri Rajesh Kumar, Accountant Member And Shri Sonjoy Sarma, Judicial Member For the Appellant : Shri Soumitra Choudhury, Advocate For the Respondent : Shri Vijay Kumar, Addl. CIT ORDER PER RAJESH KUMAR, AM: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not be verified and thus disallowed the same adding to the income of the assessee in the assessment framed u/s 143(3)/254/143(3) dated 11.03.2015. 4. In the appellate proceedings, the Ld. CIT(A) again affirmed the order of AO on the ground that payments against the Tenancy Vacancy Charges could not be verified. 5. After hearing the rival contentions and perusing the material on record including the decision of Co-ordinate Bench in ITA No. 1839/Kol/2012 for AY 2006- 07 dated 23.05.2013, we observe that case was restored to the AO with the specific direction of in this case the to the AO to verify the agreements with the tenants which were not available before the AO. The operative part of the decision in para 8 is extracted belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat if the agreement with the tenants show that without vacating of the premises the transaction would not be complete in respect of the sale of the property. However, in so far as the indenture of conveyance has been entered into on 4th March, 2006 for the transfer of the immovable property as per the provision of section 2(47) of the Act it would have to be held that the transfer took place during the assessment year 2006-07. Admittedly when computing the income from business the assessee would be entitled to all expenditures in relation to transaction., Admittedly the charges paid or payable in respect of the vacation of the.e-ants is an expenditure associated with the transaction of the sale of the immovable property. Thus the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses on stamp duty etc. We also note that 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. In our opinion, 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. The non service of notice us 133(6) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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