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2020 (9) TMI 229 - ITAT JAIPURLong term capital gain on sale of plot of land - Disallowance cost of improvement being the cost of construction of boundary wall - HELD THAT:- We note that at the time of purchase the description of the property clearly stated that there was no construction of any kind on the plot bearing no. 86/149 Pratap Nagar, Scheme of Rajasthan Housing Board, Sanaganer, Jaipur whereas at the time of sale deed dated 05.11.2008 the description of the property includes plot of land in question and the boundary wall around the said plot with length of 57 meters. Thus, the length of the boundary wall is correctly mentioned based on the dimension of the plot as 18*10.50 meters. Once the boundary wall was in existence at the time of sale though the correct description of the boundary wall is not available being the height of the boundary wall and thickness of the boundary wall, then, the claim made by the assessee is without any supporting evidence as well as necessary particulars. Having regard to the facts and circumstances of the case when the assessee has not produced even the particulars of the boundary wall being height and thickness of the wall we estimate cost of construction of the boundary wall - AO is directed to allow the cost of improvement while computing the capital gain. Disallowance of deduction u/s 54 - new property purchase by the assessee in the name of wife AND not in assesse own name - HELD THAT:- Since the assessee has sold only plot of land and not a residential house, therefore, the deduction U/s 54 of the Act is not admissible but the deduction U/s 54F is allowable. Hence, in the facts and circumstances of the case when the assessee purchased the said new residential house property in the name of wife but the investment was made by the assessee from his bank account as it is evident from the bank account statement then the claim of deduction U/s 54F of the Act cannot be denied on the ground of investment made in the name of wife. We direct the AO to compute allowable deduction U/s 54F after considering the sale proceeds and the total amount of investment for purchase of new house property. As regards the claim of expenditure incurred by the assessee on the renovation of the new asset purchased by the assessee we note that neither the AO nor the ld. CIT(A) has considered this issue despite the fact that the assessee has produced documentary evidence in support of the claim - Set aside this issue of claim of expenditure claimed on the renovation of the house property for the purpose of deduction U/s 54F to the record of the AO to decide the same after considering the evidence filed by the assessee and after giving appropriate opportunity of hearing to the assessee. Disallowance of the expenses incurred by the assessee being stamp duty and transfer charges - HELD THAT:- The assessee has claimed the stamp duty and registry expenses of ₹ 51,900/- as cost of new asset purchased by the assessee. This issue was not considered by the AO as the deduction U/s 54 of the act was disallowed at threshold on the ground that the assessee has purchased new asset in the name of the wife. CIT(A) though confirmed the disallowance but on the ground that the new house purchased by the assessee is not fit of habitation and also rejected this claim of transfer expenses in the absence of supporting evidence. It is pertinent to note that this expenditure is evident from sale deed itself whereby the assessee has purchased a new property in the name of wife. The stamp duty is part and parcel of the sale deed/purchase document and therefore, the total expenditure as evident from the registered documents itself. Hence, in the facts and circumstances of the case we allow this claim being part of cost of new property. Appeal of the assessee is partly allowed.
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