9911796707
TMI Blog2024 (7) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... y not allowing Rs. 23.50 Lakh which was paid by Assessee for putting the house in habitable condition under section 54 of the Income Tax Act. 2. The Assessing Officer has erred in and (NF AC) has compounded the error by not recognizing the fact that the assessee had entered into two separate contracts with the same builder one for the purchase of raw house property and second for wooden work, glass work, POP work, Painting works, bathroom fittings & fixing works, furniture fitting and in same property as per assessee specifications and lifestyle. It is quite clear both agreements were an integral part of the deal of buying the house property. The payment of Rs. 60 Lacs was under one contract for the purchase of the house property and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming the action of the Assessing Officer of physical verification of Inspecting officer visit at the property at H.No. B-304, Green Fields Colony Faridabad Haryana on 20.03.2016 without any intimation to assessee, was near and close to time barring date of assessment and further inspection report was based on the statement of third parties and not shared with assessee before completion of Assessment; the Assessing Officer has also given notice under section 133(6) to the seller, by calling for information U/S 133(6) dated 15/03/2016 at the last fag end of time barring case, sufficient and reasonable notice period was not allowed to Builder for verifying and certify the claim of the assessee, The Builder had replied that as his accountant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial property situated at L-8, Kalkaji, New Delhi-110019 jointly with other co-owners and his share in sale proceeds was Rs. 98,00,000/-. The assessee has purchased house property at plot no. B-303, Sector-B in residential colony known as Greenfields situated at Faridabad, Haryana on 11.12.2012 at a sale considerations of Rs. 60,00,000/- paid stamp duty of Rs. 4,80,000/- , commission of Rs. 65,000/- in respect of purchase of property and Rs. 24,24,127/- for capital expenditure to bring the new house in the habitable condition. The assessee has purchased the aforesaid flat in unfinished condition from the builder. The assessee has incurred the necessitate capital expenditures which amount to Rs. 24,24,127/- in the form of electrification of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred before the registration date. When the renovation expenses were incurred much before the registration date, then, naturally, it would be obvious that the registration valuation for which the said property would be registered would be for the same value and not for a lesser value. The appellant claims that the total cost inclusive of his renovation expenses was of the order of Rs. 89.50 lakhs whereas the appellant purchased the property at a registered value of Rs. 65.45 lakhs. No prudent person would agree to get It registered for a lesser value when he really paid a higher amount than the registration value for acquisition of the property. On the other hand, even if the renovation expenditure is Incurred much before the registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsiderations of Rs. 60,00,000/- paid stamp duty of Rs. 4,80,000/- , commission of Rs. 65,000/- in respect of purchase of property and Rs. 24,24,127/- for capital expenditure to bring the new house in the habitable condition. The assessee has purchased the aforesaid flat in unfinished condition from the builder. The assessee has incurred the necessitate capital expenditures which amount to Rs. 24,24,127/- in the form of electrification of house and water facilities, wooden works, glass works, works to carry out cooking activities, bath room fittings and fixings and painting of wall, doors and windows, in support of which necessary evidences has been provided to the AO vide letter dated 05.02.2016 to make the new property in the habitable con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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