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TMI Blog2018 (4) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be properly ascertained without making a proper enquiry from the persons concern. We find it just and proper to estimate this expenditure incurred by the assessee on the improvement of land at ₹ 6 lacs. Hence, the order of the authorities below qua this issue is modified and the claim of the assessee is allowed to the extent of ₹ 6 lacs as against ₹ 3 lacs allowed by the ld. CIT(A). Deduction u/s 54F for investment in the new asset in the name of the wife - claim denied merely on the ground that the said house was constructed in the plot of land purchased in the name of his wife - Held that:- We have carefully gone through the relevant record including transfer documents by which the assessee purchase this land i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order dated 03.02.2017 of ld. CIT(A), Alwar for the assessment year 2013-14. The assessee has raised the following grounds of appeal as under:- 1. The ld. CIT(A) has erred on facts and in law in directing the AO to consider the cost of improvement of the land sold by the assessee at ₹ 3 lacs as against ₹ 22.10 lacs claimed by the assessee. 2. The ld. CIT(A) has erred on facts and in law in holding that assessee is not entitled to deduction u/s 54F of ₹ 48,94,235/- as the investment in the new asset has been made in the name of wife. 2.1 The ld. CIT(A) has erred on facts and in law in not allowing the claim of deduction u/s 54F in respect of deposit of ₹ 49 lcas made in the capital gain account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Gravel Road of area 300 meter *20feet*2 feet. The AO accordingly, estimated the expenditure on construction of the Gravel Road at ₹ 3 lacs. The ld. CIT(A) after considering the said remand report has allowed the claim of expenditure of improvement of the land at ₹ 3 lacs as against the claim of the assessee of ₹ 22.10 lacs. 3. Before us, the ld. AR of the assessee has submitted that in the course of remand proceedings the assessee furnished the cash book and vouchers of these expenditure incurred on Gravel Road and filling of pits, etc. The AO found that the vouchers are defective as the complete details are not mentioned in the vouchers and the same are self made apart from the payment is made in cash. He has further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) is justified in restricting the claim to ₹ 3 lacs. The ld. DR has relied upon the order of the ld. CIT(A). 5. We have considered the rival submissions as well as relevant material on record. The assessee has claimed the cost of improvement of the land at ₹ 22.10 lacs though the assessee is not maintaining the regular books of accounts regarding the work of improvement carried out by the assessee. The assessee produced the cash book showing the details of the expenditure however, the most of the vouchers were found to be handed made and all the expenditure was incurred in cash. Thus, the claim of the assessee is not free from the defective. The AO has accepted that some improvement has been done on the ground as the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has already deposited ₹ 49 lacs in capital gain account and claimed to have utilised the same in construction of the house on the said plot of land purchase in the name of wife. Thus, the assessee claimed deduction u/s 54F of the Act in respect of investment in the new asset amounting to ₹ 48,94,235/-. In the remand report the AO has denied any new construction of house and further objected against the claim of deduction on the ground that the plot of land was purchased in the name of wife and therefore, when it was not made in the assessee s own name, the assessee is not entitled for the deduction u/s 54F of the Act. The ld. CIT(A) concurred with the view of the AO and accordingly, disallowed the claim of deduction u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As regards the new house purchased and constructed in the name of wife there is no dispute that the house constructed or purchase in the name spouse is eligible for the benefit u/s 54F if the other conditions as provided in section 54F are satisfied that the house is purchased or construction for the residential purpose of the assessee. However, in the case in hand, the AO in his remand report has specifically pointed out that the construction upto 3 stories has been found on the said plot of land and only 3rd floor which consist only mumty was stated to have been constructed by the assessee. Thus, as per the remand report the house in question was already in existence at the said plot of land which was purchased in the name of wife and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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