I. Gulam Vs ITO (ITAT Chennai)
It is very clear that the purchaser has agreed to pay ₹.7.40 crores for vacation of tenants of the premises, which was noted in the sized document by the Department and the purchaser has admitted to have made payment amounting to ₹.6.65 crores for vacation of tenants of the premises, which means, the purchaser has purchased encumbered property and in order to clear the encumbrances, the purchaser paid lump-sum amount to the tenants/occupants of the property. Moreover, in the above statement, in nowhere it was mentioned that the above sum of ₹.6.65 crores was paid either to the seller or through the seller of the property. From the above statement, it is also very clear that dealings are only between the purchaser of the property and tenants occupied in that premises. However, the purchaser has not given any details/break-up for arriving the figure of ₹.7.40 crores/₹.6.65 crores, which it was aggrieved to pay for vacation of tenants of the premises or how many tenants have occupied in that premises. Under the above facts and circumstances, we are of the considered opinion that whatever amount paid by the buyer to the tenant for the vacation of tenancy should not be taxed in the hands of the owner of the capital asset.
