TMI Blog2014 (4) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee did not sell the furniture items which is apparent from the registered sale deed. The only basis on which the assessee is claiming deduction of Rs.12 lakhs is on account of inventory of furniture purchased by a separate agreement - The description of items clearly indicates that the items consisted of removable woodwork - The sale deed executed by the assessee does not mention about the sale of these items - It is possible that assessee might have sold these items separately through a separate agreement as he had done at the time of purchase - the claim of the assessee to exclude the cost of acquisition of such furniture from sale consideration of house property is not justified – the furniture and fixture are personal affects which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so considered by the Ld Assessing Officer, they further erred in not deducting its market value as on date of sale from the sale consideration of the hose since the gross sale consideration included the sale of such items and therefore is bad in law and on facts of the case. The basic grievance of the assessee is regarding non deduction of Rs.12 lakhs from the sale consideration for arriving at the amount of capital gains. 2. The brief facts of the case are that during the year under consideration the assessee sold a residential floor being E-215, East of Kailash, New Delhi which was purchased by him in July, 1997. The assessee had purchased this property in the form of four registered sale deeds which are placed at paper book pages ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds. Rs.12,00,000/- has been paid for acquisition of furniture and fixture. There is no sale deed registered for this amount neither there is any mention in the four sale deeds. From the facts, it is apparent that the said four deeds also do not mention about any other separate agreement for furniture and fixture. From these facts the Assessing Officer has deduced that:- In the general parlance when a property is sold, it is sold with all the doors, windows, cupboards which are fixed in the house,. No where windows and doors are sold separately from the sale of the house, nowhere a house is sold separately and furniture is sold separately. Further furniture are personal affects which are not covered under the head capital asset as per pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terfere with that. The grounds raised on the issue are dismissed. 4. Aggrieved the assessee is in appeal before us. 5. At the outset the Ld AR explained the facts of the case and submitted that originally the assessee had purchased this house property and had entered into two separate agreements, one for bare shell building and one for furniture and fixture fixed thereon and in this respect our attention was invited to paper book pages 53 to 62 where both agreements were placed. Inviting our attention specifically to page 61 of the paper book the Ld AR submitted that the entire inventory of furniture and fixture which was purchased along with bare shell included wooden paneling, wooden partition, wooden grill, cupboards etc. The Ld A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of the Act regarding mode of computation of capital gain has a direct bearing on the case. The relevant section is reproduced as under:- Section 48: The income chargeable under the head capital gain shall be computed by deducting from the full value of consideration received or accruing as a result of transfer of capital asset, the following amounts namely:- i) expenditure incurred wholly and exclusively in connection with such transfer; ii) the cost of acquisition of the asset and the cost of any improvement thereto. Therefore, the plain reading of this section suggests as under:- i) The asset sold should be a capital asset. ii) From the sale consideration only cost of acquisition of the assessment , cost of impr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no mention of fact of having purchased furniture and fixture in the purchase deeds. Therefore, the fact becomes clear that assessee did not sell the furniture items which is apparent from the registered sale deed. The only basis on which the assessee is claiming deduction of Rs.12 lakhs is on account of inventory of furniture purchased by a separate agreement placed at paper book page 61 62. The description of items clearly indicates that the items consisted of removable woodwork. The sale deed executed by the assessee does not mention about the sale of these items. It is possible that assessee might have sold these items separately through a separate agreement as he had done at the time of purchase. Therefore, the claim of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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