TMI Blog2023 (12) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... nes. Having said so, the AO holds that the expenses relatable to Air conditioning, modular kitchen and kitchen chimney, tube-well and submersible pump are not allowable as cost of improvement. The AO again agrees that the valuation report cannot be completely disregarded and parts of it are based on evidence and is in line with existing CPWD guidelines but has an objection that the photographs produced by the assessee are vague and insufficient to prove the incurrence of expenditure. AO also held that the photographs do not portray the exact specification of the improvement made. It cannot be said that the house operated, made to live without a modular kitchen. The availability of submersible pump is a finding of fact and not mentioning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as gift from parents - As find that the ld. CIT(A) had diligently, meticulously conscientiously, after considering the Hon ble jurisdictional High Court judgments in the case of ACIT Vs. Suresh Verma [ 2012 (3) TMI 256 - ITAT DELHI] CIT Vs. Kamal Wahal [ 2013 (1) TMI 401 - DELHI HIGH COURT] came to a valid conclusion that the investments have been made by the assessee from his bank account of Rs. 17,65,000/- on 14.08.2014 and Rs. 3,31,82,000/- dated 21.08.2014 for payment to Sh. V. Ravindran, seller of the property and the parents have gone to registration owing to the absence of the assessee in India. It is also a fact that such registered property has also been gifted to the assessee by the parents on 10.06.2015. Hence, we decline ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and in law, the learned CIT(A) erred in upholding the AO s order of arbitrarily disallowing the deduction of Rs. 13,80,146/- towards the Cost of Improvement in the Bangalore House u/s 54 of the ITA? 4. Whether, on the facts and circumstances of the case and in law, the learned CIT(A) erred in upholding the AO s order of initiating interest proceedings under the applicable section 234A/234B/234C/234D of the ITA? 3. In ITA No. 8490/Del/2019, following grounds have been raised by the Revenue: 1. The Ld. CIT(A) has erred in facts and in law in deleting the disallowance of deduction u/s 54 of the IT Act, 1961 of Rs. 3,94,14,887/- towards Cost of Acquisition and Cost of improvement of the Bangalore House. 2. Whether on fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort Cost of improvement according to valuation report 1983 5 ton central Air conditioning Rs. 50,000 1999-00 Garage Canopy, Kota Stone, Drive way Rs. 52,500 2005-06 New flooring in ground floor Rs. 1,00,000 2010-11 Improvement in new kitchen and new flooring Rs. 95,000 2013-14 Improvement new flooring in entire house Rs. 1,25,000 2014-15 Tube well L.S. with connections and submersible Rs. 1,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any verifiable reasoning, or with any supporting documents. Even otherwise, the Valuer's report is one of the several documents that need to be taken into consideration while framing an assessment and cannot be the final worked regarding the cost of acquisition and cost of improvement. Photographs produced by the assessee are vague and insufficient to prove the incurrence of expenditure as claimed. The pictures are selective, do not indicate the year in which the expense was incurred and the cost, nor do they portray the exact specifications of the improvements made. 8. From the above, we find that the AO has categorically accepted that Air conditioning, modular kitchen and kitchen chimney, tube-well and submersible pump are not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 13,80,146/- as cost of improvement which includes a sum of Rs. 12,00,000/- incurred for installation of lift. In this regard, the assessee submitted a handwritten note signed by one Sh. Manjunath admitting the receipt of Rs. 4,50,000/- and Rs. 3,75,000/- dated 10.09.2014 and 03.09.2014 respectively. We find that the revenue has not disputed the import of Pneumatic Vacuum Elevator (PVE) however held that it is not essential for the improvement of the house to make it habitable. Whether to have a lift in the house or not is certainly not the purview of the Assessing Officer. Notwithstanding that, we find that the father of the assessee, Brig. V. K. Ghai is 90 years old staying with the assessee which is also a fact on record before th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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