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2014 (1) TMI 883 - AT - Income TaxRecall of appeal – Rectification of error apparent on record - Denial of exemption u/s 54 of the Act - Cost of improvement incurred in the new house property – Held that:- The cost of purchases does include any capital expenditure incurred on the assesse on such property to make it liveable - As long as the costs are of such a nature as would be includible in the cost of construction in the normal course, even if the assessee has bought a readymade unit and incurred those costs after so purchasing the readymade unit – as per his taste and requirements, the costs so incurred will form integral part of the qualifying amount of investment in the house property - The use of words ‘purchased or construed’ does not mean that the property can either be purchased or constructed and not a combination of both the actions - A property may have been purchased as a readymade unit but that does not restricts the buyer from incurring any bonafide construction expenditure on improvisation or supplementary work - As long as the assessee has incurred the bonafide construction expenditure, even after purchasing the unit, the additional expenses so incurred would be eligible for qualifying investment under Section 54 - as the relevant factual verifications have not been carried out by any of the authorities below – it would be fit and proper to restore the matter to the Assessing Officer for fresh adjudication – Decided in favour of Assessee.
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