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TMI Blog2023 (2) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... half of the assessee and Shri Shri S.C.Mohanty, Sr. DR represented on behalf of the revenue. 3. It was submitted by the ld. Sr. Advocate that the assessee owned 5.586 decimal of land in Puri. Out of the same, he had sold 0.586 decimal of land during the assessment year 2015-2016 and he had also sold 0.160 decimal during the assessment year 2016-2017, respectively. It was the submission that in the assessment year 2015-2016, the assessee had claimed a deduction of Rs.30,10,320/- and for the assessment year 2016-2017 an expenditure of Rs.18,67,682/- as expenditure in relation to the cost of the improvement of the land. It was the submission that the said expenditure was in the nature of purchase of sand for filling up the low-lying land and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's claim demanding more concrete evidence. What is the nature of the evidence that the AO desires is not coming out of the assessment order but in any case as it is noticed that the assessee has provided the details of the expenditure, we are of the view that the expenditure is allowable expenditure. Consequently, the AO is directed to allow the expenditure claimed of Rs.30,10,320/- for the assessment year 2015-2016 and Rs.18,67,682/- for the assessment year 2016-2017 towards cost of improvement of the land sold by the assessee. 6. It was submitted by the ld. Sr. Advocate that the second issue relates to the assessment year 2015-2016 wherein the assessee had claimed deduction u/s.54F in respect of the four-storied house building incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... building was used as a residence of the assessee though the seller had been using the property as a guest house. It was the submission that as the assessee has been using the property as his residence after the purchase, the assessee was entitled to the benefit of deduction u/s.54F of the Act. It was the submission that the ld. AO had obtained a letter from the Executive Officer, Puri Municipality which mentions that from the financial year 2012-2013 to 2017-2018, the property was used as commercial and taxes were paid at commercial rates. Ld. AR drew our attention to tax paid receipts at page 22 of the paper book for the period 2016-2017, which showed that the property tax is recorded as commercial-cum-residential. It was the submission th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to claim of deduction u/s.54F of the Act. It was the submission that the order of the AO and that of the ld. CIT(A) is liable to be upheld. 8. We have considered the rival submissions. As the facts were not coming clear insofar as the corporation tax receipt produced by the assessee showed taxes being collected in respect of the said building as being commercial-cum-residential, a remand report was called from the AO, Puri Ward, Puri. The AO has got done physical verification of the property at Puri. As per the physical verification it is submitted that the assessee is using one floor of the said building for his residential purpose and the balance of the building has been leased out for running of the hotel. This is as per the reman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is directed to grant the assessee the benefit of deduction u/s.54F of the Act in respect of the first floor of the said commercial-cum-residential building purchased by the assessee during the assessment year 2015-2016. 9. Applying the same criteria, the AO is directed to grant the assessee the benefit of deduction u/s.54F of the Act to the extent of 26.75% of the expenditure towards development of house property claimed u/s.54F of the Act for the assessment year 2015-2016 & 2016-2017. However, this expenditure has not been verified by the AO. For the purpose of verification of the nature of the expenditure for the assessment year 2015-2016 & 2016-2017, the issue is hereby restored to the file of AO. 10. In the result, appeal for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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