Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 569 - AT - Income TaxDisallowance the cost of improvement of the land while computing the capital gain on sale of the said land - Held that:- AO estimated the cost of work at ₹ 25,000/- Though the assessee has not produced the complete supporting evidence in support of the claim however, the Assessing Officer has not denied the work done by the assessee on the ground therefore, the issue is only a proper and reasonable estimation of the cost of the work done by the assessee. Since, the land was already under gone for plotting and construction of road and the work was carried out more than 4 years prior to the date of inspection therefore, cost of work done cannot be properly ascertained without making a proper enquiry from the persons concern. We find it just and proper to estimate this expenditure incurred by the assessee on the improvement of land at ₹ 6 lacs. Hence, the order of the authorities below qua this issue is modified and the claim of the assessee is allowed to the extent of ₹ 6 lacs as against ₹ 3 lacs allowed by the ld. CIT(A). Deduction u/s 54F for investment in the new asset in the name of the wife - claim denied merely on the ground that the said house was constructed in the plot of land purchased in the name of his wife - Held that:- We have carefully gone through the relevant record including transfer documents by which the assessee purchase this land in the name of wife but no description of constructed area has been given in the said document though the map site plan attached to the sale document show some construction on the plot of land. There is no scheduled of property in the sale document, therefore, it is not possible to ascertain that the plot of land in question was purchased in the name of wife along with the constructed area or it was plain plot of land. Hence, in these facts and circumstances of the case when the construction of the house is disputed by the AO then, the claim of the assessee to the extent of the purchase consideration of ₹ 20 lacs is allowable. As regards the cost of construction since it is not ascertainable from record available before us therefore, in the absence of any supporting documents to show the construction of the house carried out by the assessee we restrict the claim of the assessee u/s 54F to ₹ 20 lacs. We may clarify that since, the AO has already accepted the purchase of land with house for consideration of ₹ 20 lacs therefore, as per the accepted position the said investment will be considered for purchase of new house for the purpose of Section 54F of the Act.
|