9911796707
TMI Blog2024 (7) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... of house and water facilities, wooden works, glass works, works to carry out cooking activities, bath room fittings and fixings and painting of wall, doors and windows, in support of which necessary evidences has been provided to the AO vide letter dated 05.02.2016 to make the new property in the habitable condition since the flat so purchased was in unfinished/in a state of general disrepair and was inhabitable. AO has denied assessee s claim u/s 54 of the Act without cogent reasons. Ld. CIT (A) also called the expenditure incurred to bring the house inhabitable condition as renovation expenses. As per the facts of the case, the house was purchased in inhabitable condition and expenditure was necessary for the proper electrification, water ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecifications and lifestyle. It is quite clear both agreements were an integral part of the deal of buying the house property. The payment of Rs. 60 Lacs was under one contract for the purchase of the house property and the remaining payment of Rs 23.50 Lacs was made under contract for the wooden work, glass work, POP work, Painting works, bathroom fittings fixing works, furniture fitting and improvement of same property as per assessee specifications requirements and lifestyle from the same builder. The consideration for both contracts was made through banking channels before the registration of property. 3. The Assessing officer has erred in and National Faceless Appeal has compounded this by not considering, assets for Section 54 should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the last fag end of time barring case, sufficient and reasonable notice period was not allowed to Builder for verifying and certify the claim of the assessee, The Builder had replied that as his accountant is on festival leave for one week and he needs time up to 4th April 2016. The assessment was completed in hurry within the next 11 Days on 31.03.2016 as it was getting time barring. 8. The NFAC has erred by not relying upon a judgment of ITAT Ahmedabad D Bench in the case of Rajat B Mehta vs. ITO (ITA No.19/2011-12). In that case, two separate agreements have been entered one agreement for the purchase of the property and the second for furniture fitting. ITAT Ahmedabad D Bench upholds the grievance of the assessee, and, accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has purchased the aforesaid flat in unfinished condition from the builder. The assessee has incurred the necessitate capital expenditures which amount to Rs. 24,24,127/- in the form of electrification of house and water facilities, wooden works, glass works, works to carry out cooking activities, bath room fittings and fixings and painting of wall, doors and windows, in support of which necessary evidences has been provided to the AO vide letter dated 05.02.2016 to make the new property in the habitable condition since the flat so purchased was in unfinished/in a state of general disrepair and was inhabitable. The AO denied the claims made by assessee u/s 54 of the Act stating that the capital expenditure so made by the assessee to bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lesser value when he really paid a higher amount than the registration value for acquisition of the property. On the other hand, even if the renovation expenditure is Incurred much before the registration, no prudent person will enter into an agreement for renovation much after the renovation work is completed. It is also to be stated here that the AO also did not bring on record the mode of incurring such a volume of expenditure which the appellant claims it as capital expenditure. The appellant relied upon a judgment of ITAT Ahmedabad D Bench in the case of Rajat B Mehta vs ITO (ITA No 19/2011-12) This Judgment of the Hon'ble ITAT will not come to rescues as according to the appellant the renovation charges were incurred much before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings and fixings and painting of wall, doors and windows, in support of which necessary evidences has been provided to the AO vide letter dated 05.02.2016 to make the new property in the habitable condition since the flat so purchased was in unfinished/in a state of general disrepair and was inhabitable. AO has denied assessee s claim under section 54 of the Act without cogent reasons. Ld. CIT (A) also called the expenditure incurred to bring the house inhabitable condition as renovation expenses. As per the facts of the case, the house was purchased in inhabitable condition and expenditure was necessary for the proper electrification, water facilities, wood work, glass work, etc. as detailed above. It cannot be at all called renovation exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
