TMI Blog2023 (2) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 - I.T.A. No. 794/Chny/2019 - - - Dated:- 15-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loor, third floor, fourth floor and a portion of fifth floor consisting of 6770 sq. feet of built up area for a land area of 1455 sq. ft. The ground floor and first floor let out for tenancy and the balance other floors used for his residential purpose. The assessee claimed 50% of ₹.2,59,20,000/- comes to ₹.1,29,60,000/- for availing exemption under section 54 of the Act. The assessee worked out the proportionate capital gain exemption at ₹.78,19,945/- and claimed as exemption and furnished computation sheet of capital gain. On verification of the purchase deed dated 07.04.2016, the Assessing Officer has observed that the property consist of ground floor 1323 sq. ft., first floor 1323 sq. ft., second floor 1323 sq. ft., th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the excess amount of deduction claimed of ₹.44,47,276/- was disallowed and brought to tax. 2.2 So far as claim of cost of improvement and indexation, the assessee has not furnished any supporting documents in response to notice under section 142(1) of the Act dated 30.05.2017. The assessee was show-caused as to why the cost of improvement should not be disallowed. In response to the notice, the assessee has submitted bills by stating that the improvement was made in the financial year 2007-2009. After verifying the bills, the Assessing Officer has restricted the indexed cost of improvement to ₹.2,46,888/-. Accordingly, by allowing indexed cost of acquisition at ₹.69,68,739/-, indexed cost of improvement at ₹. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her for ₹.1,91,52,500/- through two different sale deeds dated 10.04.2014. Subsequently, the assessee has purchased property at Vepery High Road, Chennai for a total consideration of ₹.2,40,00,000/- vide purchase deed dated 07.04.2016 and also paid stamp paper and registration charges at ₹.19,20,000/-. Thus, the total amount towards the purchase of property comes to ₹.2,59,20,000/-. In the new property purchased consist of 5 floors; 5th floor is open terrace, 1st 2nd floor are for commercial use, 3rd 4th floors are two separate residential units, 4th floor was let out and 3rd floor was kept for personal use. The case of the assessee is that 3rd 4th floor were used for own residential purpose and after two years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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