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2019 (11) TMI 923 - AT - Income TaxRevision u/s 263 - claim of exemption u/s.54F - as per CIT necessary enquiry were not conducted and whether cost of interior decoration was allowable or not, these were not specifically enquired into by the Assessing Officer while framing assessment - HELD THAT:- The issue on which 263 jurisdiction was assumed by the Ld. Pr. Commissioner of Income Tax, to those issues, the Assessing Officer has enquired into and replies were also filed in detail by the assessee in response thereto. In such scenario, the Ld. Pr. Commissioner of Income Tax could not have assumed the jurisdiction u/s.263. That further, regarding contentions of the Ld. DR that section 54F pertains to the cost of acquisition of the new assets and it does not cover the cost of interior decoration, in this regard, as evident from the agreement entered into between the promoter and the assessee therein certain essential items as mentioned herein above in the order were to be carried out by the assessee himself. These expenses are necessary to suitably live in that particular flat. These expenses are necessary for habitation in that particular flat. They do not pertain to any decoration item rather they are all essential to make a flat fit for living. Reverting to the facts of the present case, expenses were incurred on floor, bathrooms fittings and electrifications etc. which are necessary to live in that flat. In view of the aforesaid examination of the facts and legal parameters, we are of the considered view that the revisionary order passed by the Ld. Pr. Commissioner of Income Tax is not correct within the legal framework, rather arbitrary, un-judicious, bad in law and liable to be quashed. - Decided in favour of assessee.
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