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Issues involved:
The judgment involves the following Issues: 1. Disallowance of tenancy vacation charges as contingent liability. 2. Treatment of sale consideration as contingent receipt. Issue 1: Disallowance of tenancy vacation charges as contingent liability: The assessee entered into agreements for sale of tenanted property, with the obligation to provide vacant possession by a specified date. The AO disallowed Rs.1,23,40,000 as tenancy vacation charges, deeming them contingent until the tenants vacated the property. The assessee argued that the expenses were part of the sale transaction and should be allowed. The CIT(A) upheld the AO's view. The Tribunal noted that the transfer of property had taken place as per the deed of conveyance, and the expenses were associated with the sale transaction. The issue was remanded to the AO to verify the agreements with tenants for granting the deduction. Issue 2: Treatment of sale consideration as contingent receipt: The assessee contended that if the expenses were considered contingent, then the sale consideration should also be treated as contingent. The Revenue argued that the transfer was complete upon possession, making it non-contingent. The Tribunal observed that the sale was completed as per the deed of conveyance, and the expenses were integral to the transaction. The matter was remanded to the AO for verification of agreements with tenants to allow the deduction. In conclusion, the Tribunal allowed the assessee's appeal for statistical purposes, remanding the issue of tenancy vacation charges back to the AO for verification of agreements to determine the eligibility for deduction.
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