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2016 (11) TMI 1602 - HC - Income TaxExemption under Section 54F - expenditure purportedly incurred by the assessee on renovating the new asset, after its purchase by the assessee, to make it habitable - whether be included in the cost of the new asset? - Held that:- Tribunal has allowed the respondentassessee's appeal by following the decisions of its Coordinate Benches at Mumbai in Saleem Fazuebhoi v/s. DCIT [2006 (6) TMI 139 - ITAT BOMBAY-G] to hold that the expenditure incurred on making the house habitable should be considered as an investment in purchase of a house, subject to the condition that the payment was made during the specified period under Section 54F of the Act. The Revenue has accepted the above two decisions of the Tribunal. This for the reason that it has not been able to show that any appeal has been filed from the two aforesaid decisions of the Coordinate Benches of the Tribunal. The impugned order has merely been followed by the impugned order of the Tribunal. Improvement cost inclusion in the cost of the new asset while working out the exemption under Section 54F - Held that:- The impugned order of the Tribunal records “we have considered the rival submissions as well as the relevant material on record. There is no dispute that the assessee has incurred an expenditure of ₹ 58.26 lakhs on the improvement of the flat purchased by the assessee to make in a habitable condition.” The aforesaid statement recorded by the Tribunal has to be accepted in the absence of the same being rectified by it. It therefore follows that before the Tribunal the Revenue did not urge that the expenditure of ₹ 58.26 lakhs had not been in fact incurred to improve the flat so as to make it in habitable condition. No substantial question of law. Appeal admitted on the substantial questions of law at question nos. (1) and (4).
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