Amount paid to tenant for vacating the property

Sumit (CA Practice ) (675 Points)

01 December 2011  


In case company pays an amount to its tenants for getting its property vacated, whether it will be considered as cost of improvement or not ??????

Similary, what will be the tax effect of the tenants receiving compensation for getting the property vacated???

Kindly reply earliest and if possible with relevant case laws...

Practical query