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2023 (2) TMI 703 - ITAT CHENNAIDeduction u/s 54 - Deduction eligible for one residential house - case of the assessee is that 3rd & 4th floor were used for own residential purpose and after two years, he gave it on rent - AO restricted the deduction under section 54 of the Act to the investment in 3rd floor keeping in view of the amendment to section 54 of the Act eligible for one residential house - HELD THAT:- Admittedly, the assessee has not been able to establish that 3rd & 4th floor are not independent and thus, we find that the Assessing Officer has correctly allowed the claim of deduction under section 54 of the Act for 3rd floor. Restricting the cost of improvement - AO disallowed the payments for painting, grills and Gates and labour masonry & tiles for want of supporting document/or bills without date & signature - It is common for painting the building after purchase and providing grills & gates and doing masonry & tiles work. Accordingly, we direct the Assessing Officer to include the payments along with cost of improvement restricted by the Assessing Officer at ₹.2,46,888/- and rework out the indexed cost of improvement [₹.19,221/- + ₹.21,785/- + ₹.4,79,000/- + 2,46,888/-] and allow the same. Appeal filed by the assessee is partly allowed
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