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TMI Blog2018 (4) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed by the assessee. 2. The ld. CIT(A) has erred on facts and in law in holding that assessee is not entitled to deduction u/s 54F of Rs. 48,94,235/- as the investment in the new asset has been made in the name of wife. 2.1 The ld. CIT(A) has erred on facts and in law in not allowing the claim of deduction u/s 54F in respect of deposit of Rs. 49 lcas made in the capital gain account scheme which is utilized in the construction of the house on the land purchased in the name of the wife. 3. The assessee craves to alter, amend, modify any of the grounds of appeal. 4. Necessary cost be allowed to the assessee." 2. Ground No. 1 is regarding disallowance the cost of improvement of the land while computing the capital gain on sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has submitted that in the course of remand proceedings the assessee furnished the cash book and vouchers of these expenditure incurred on Gravel Road and filling of pits, etc. The AO found that the vouchers are defective as the complete details are not mentioned in the vouchers and the same are self made apart from the payment is made in cash. He has further contended that the Assessing Officer has estimated the cost of the Gravel Road without accepting the actual cost and expenditure incurred by the assessee. Further, the AO as well as the ld. CIT(A) has not considered the expenditure incurred by the assessee on levelling of land and filling of the pits. In support of these expenditure incurred, the assessee has produced cash book, bills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the assessee. The assessee produced the cash book showing the details of the expenditure however, the most of the vouchers were found to be handed made and all the expenditure was incurred in cash. Thus, the claim of the assessee is not free from the defective. The AO has accepted that some improvement has been done on the ground as the assessee has constructed the Gravel Road in the area and the land was sold after the plotting as per the lay out schemes. It is also accepted by the AO that some filling work was done however, the AO estimated the cost of work at Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of deduction on the ground that the plot of land was purchased in the name of wife and therefore, when it was not made in the assessee's own name, the assessee is not entitled for the deduction u/s 54F of the Act. The ld. CIT(A) concurred with the view of the AO and accordingly, disallowed the claim of deduction u/s 54F of the Act. 7. Before us, the ld. AR of the assessee has submitted that when the plot of land was purchased from sale proceeds of land then, the deduction u/s 54F of the Act cannot be denied merely on the ground that the said house was constructed in the plot of land purchased in the name of his wife. In support of his contention, he has relied upon the following decisions as under:- * CIT Kamal Wahal 351 ITR 4. * CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s has been found on the said plot of land and only 3rd floor which consist only mumty was stated to have been constructed by the assessee. Thus, as per the remand report the house in question was already in existence at the said plot of land which was purchased in the name of wife and the assessee has not incurred any expenditure on the construction of the said house except the construction at third floor. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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