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2015 (10) TMI 534 - AT - Income TaxRevision u/s 263 - CIT held that the consideration received under a separate agreement towards sale of fixtures and fittings does not qualify for deduction u/s 54 as according to him the fittings and furnitures are not capital asset u/s 2(14) of the I. T. Act, thus AO has failed to assess the sum under the head “income from other sources” and therefore, held that the assessment order passed is both erroneous and prejudicial to the interests of the revenue - Held that:- As the list of the fittings and fixtures are not part of the record, we are unable to examine the nature of the asset and also as to whether they form part of the flat. The assets in question are fittings and fixtures in the flat. Even if they are not accepted to be part of the flat, whether the income from sale of such assets is taxable in the hands of the assessee as “income from other sources”?. The furniture and fittings are in the nature of personal effects of the assessee held for her personal use and income from such affects is not chargeable to tax. Whether the amount is considered as sale consideration and allowed deduction u/s 54F or excluded from computation and disallowed the deductions, there is no tax effect. Therefore, by not bringing it to tax, there is no prejudice caused to the Revenue. The additional grounds of appeal are accordingly allowed. Since the assessment order is held to be not prejudicial to the interests of Revenue, the revision order u/s 263 is not sustainable and is accordingly quashed. - Decided in favour of assessee.
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