Deduction u/s 54F or u/s 54 - mere sale of land instead of land ...

Deduction for Property Sale: Section 54 Allows Costs for Habitable Home, Excludes Luxury Items.

February 12, 2022

Case Laws     Income Tax     AT

Deduction u/s 54F or u/s 54 - mere sale of land instead of land and building - The cost of the property declared by the assessee includes an amount for making the house habitable which includes certain items as per serial No.1 to 16 of the table at para 5.5. of the CIT(A) which in our opinion is not allowable as a deduction for making the house habitable because these are all luxury items.CIT(A) has rightly determined the amount for making the house habitable. Therefore, the assessee is entitled to get the benefit of deduction u/s 54 of the Act to the extent including amount for making the house habitable. - AT

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