TMI Blog2010 (10) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid on housing loan as the cost of the flat which is sold during the relevant assessment year. As the interest paid on housing loan of the same is capitalized, the disallowance of `.1,92,820/- of interest should be allowed. 2. Without prejudice to the above the interest paid on housing loan is allowable deduction u/s.24 which is also accepted by the AO while passing the order. Hence, interest on housing loan should be allowed as deduction while computing the income. 3. The learned AO has erred in disallowing of ₹ 47,000/-, payment made for building repair fund as cost of acquisition. As the payment is made for towards the flat repair fund, the same should be allowed, the addition should be deleted. 2. Briefly stated, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to the stand taken by the Assessing Officer. The assessee is not satisfied and is in further appeal before the Tribunal. 3. We have heard the rival contentions and also perused the material on record. The main thrust of learned counsels arguments before us is that these amounts have been capitalized and have not been claimed as deduction in computation of income, therefore, the same should be included in the cost of acquisition. Learned counsel further submits that in case these amounts are not allowed as part of the cost of acquisition, the same should be taken into account in the computation of income. Learned Departmental Representative, on the other hand, relied on the orders of the authorities below and pointed out that in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The expenditure is not even a capital expenditure in nature and merely because the assessee claimed to have capitalized the expenditure, it cannot be treated as cost of improvement because it has to be covered by section 55(1) of the Act. In order to be included in the costs of improvement, not only that the expenditure has to be a capital expenditure in nature, but it is also to be incurred in making any additions or alterations related to the capital asset. The second limb of conditions of the assessee is not clearly satisfied in the present case. As regards the learned counsel s alternative submissions that the expenditure incurred in computation of income, no specific provisions have been pointed under which, the claim for de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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