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TMI Blog2018 (12) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... property, hence, in the light of these facts, we direct the AO to consider the rate at 2200 per sq.ft. for considering the FMV as on 01.04.1981 in respect of built-up area 1675 sq.ft as considered in the valuation report and as shown in the sale deed. This ground of appeal of the assessee is allowed. Therefore, the direction of the CIT(A) to the AO to consider the area at 1675 sq.ft. are upheld department’s ground No.1 of appeal is dismissed. Disallowance in respect of cost of improvement - Held that:- Assessee has not been able to furnish any details of cost of renovation carried out in respect of the properties sold under consideration. Therefore, the CIT(A) has rightly disallowed the same, accordingly this ground of appeal is therefore dismissed. Disallowance of deduction u/s.54 on alleged ground that house boat is not a residential property within the meaning of section 54 - Held that:- We find that the assessee has not produced the registered sale deed for purchase of house boat, therefore it cannot be said that the assessee has purchased a residential house. Further, there is a ban in purchase of immovable property as well as boat by the non-sate subject of the J & K St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther erred on facts as also in law in confirming the action of the AO in rejecting the valuation report and estimating fair value as on 01.04.1981 at ₹ 1,750/- per sq. ft. as against value determined at ₹ 2,200/- by the registered valuer as per valuation report and directing the AO to adopt such value in respect of 1,675 Sq. fts. The valuation may kindly be directed to accept as per the report of the registered valuer. 4.0 The ld.CIT(A) erred on facts as also in law in confirming the disallowance of ₹ 1,90,000/- made in respect of cost of improvement. The disallowance being totally unjustified on facts as also in law and may kindly be deleted. 5.0 The learned CIT(A) erred on facts as also in law in confirming the disallowance of deduction u/s. 54 of the Act on the alleged ground that the House Boat is not a residential property within the meaning of section 54 of the Act. The disallowance confirmed is totally unjustified on facts as also in law and deserves to be deleted and may kindly be deleted. 3. Revenue raised the following ground of appeal : 1. The Ld.CIT(A) has erred in law and on facts in directing the Assessing Officer to recom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by adopting the report 1750 per sq.ft of the carpet area 1340 sq. ft. instead of ₹ 2200 per sq. ft of the carpet area of 1675 sq. ft. adopted by the assessee. The ld.Counsel submitted that the CIT(A) has directed the AO to adopt the rate of 1750 per sq.ft. in respect of built up area of 1675 sq.ft as against rate of 2200 per sq.ft. taken by the assessee. The ld.Counsel therefore placing reliance on the decision of Hon ble Gujarat High Court in the case of Hiraben Jayantilal Shah vs. ITO 310 ITR 31 (Guj) submitted that the AO was incorrect in making reference to the DVO u/s. 55A of the Act as reference can be made u/s.55A only when the AO of the opinion that the fair market value of the asset claimed by the assessee is less than its FMV and not when he was of the opinion that the FMV of the property as on 1st April 1981, as shown by the assessee was more than its actual FMV, hence reference to DVO was not valid, consequently, non accepting the valuation report of the registered valuer of the assessee is invalid. It was contended that the FMV adopted by the assessee was @2200 which is higher than market value of the property considered by the assessee hence no reference should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has claimed a sum of ₹ 1,90,000/- on account of cost of renovation carried out from 1981 to 1999. However, the same was disallowed as there was no basis or nor details were furnished. The CIT(A) has also confirmed the same since the valuer of the assessee has included the cost of improvement of ₹ 1,90,000/-, therefore, the CIT(A) ought to have allowed such deduction on said account. 11. On the other hand, the ld.Senior Departmental Representative relied on the orders of the Lower Authorities. 12. We have heard the rival submissions and find that the assessee has not been able to furnish any details of cost of renovation carried out in respect of the properties sold under consideration. Therefore, the CIT(A) has rightly disallowed the same, accordingly this ground of appeal is therefore dismissed. 13. Ground No.5 relates to confirming the disallowance of deduction u/s.54 of the Act on alleged ground that house boat is not a residential property within the meaning of section 54 of the Act. The ld.Counsel for the assessee submitted that the assessee had purchased a house boat at Srinagar for consideration for 10 lakhs from Mr.Abdul Khalil Wangnoo vide agreement f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, hence it cannot be said that the assessee has acquired a residential house as per provision of section 54 of the Act. In rejoinder, the ld.Counsel for the assessee submitted a Wikipedia in which a house boat is described as a accommodation for tourist in the area of Sri Nagar in Jammu Kashmir(J K), hence the house boat is a residential house for the purpose of deduction u/s.54 of the Act. The Sr. DR further submitted a copy of letter issued from the Assistant Commissioner (C) that Divisional Commissioner Kashmir dated 05.07.2013 in which it has been stated that a non-state subject cannot purchase a house boat in J K as the floating bodies in Dal is classified as land, as referred in section 3 sub section 2 of J K Land Revenue Act 1939AD. 15. We have heard the rival submissions and perused the material on record, we find that the assessee has not produced the registered sale deed for purchase of house boat, therefore it cannot be said that the assessee has purchased a residential house. Further, there is a ban in purchase of immovable property as well as boat by the non-sate subject of the J K State. Therefore, the assessee is not legally entitled to purchase house b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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