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Tribunal affirms CIT(A)'s decision on non-deduction of furniture value in capital gains calculation The tribunal upheld the decision of the Ld CIT(A) regarding the non-deduction of Rs.12 lakhs from the sale consideration for calculating capital gains, ...
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Tribunal affirms CIT(A)'s decision on non-deduction of furniture value in capital gains calculation
The tribunal upheld the decision of the Ld CIT(A) regarding the non-deduction of Rs.12 lakhs from the sale consideration for calculating capital gains, emphasizing that furniture and fixture are not considered capital assets. The absence of mention of furniture sale in the deeds indicated that it was not part of the property sold, leading to the dismissal of the appeal.
Issues: Non-deduction of Rs.12 lakhs from sale consideration for capital gains calculation.
Detailed Analysis:
Issue 1: Non-deduction of Rs.12 lakhs from sale consideration The appeal was filed against the order of the Ld CIT(A) regarding the non-deduction of Rs.12 lakhs from the sale consideration for calculating capital gains. The assessee sold a residential floor in New Delhi purchased in 1997 and claimed Rs.12 lakhs as part of the cost of acquisition. The Assessing Officer did not agree with this claim, stating that the payment for furniture cannot be added to the cost of acquisition. The Ld CIT(A) upheld this decision, emphasizing that furniture and fixture are personal effects not covered under the definition of capital asset. The Ld AR argued that the payments were made for the house property only, supported by two separate agreements and inventory details. However, the sale deeds did not mention the sale of furniture, indicating that it was not part of the property sold. The tribunal noted that the furniture was not a capital asset and its inclusion in the cost of acquisition was incorrect. Therefore, the appeal was dismissed.
Conclusion: The tribunal upheld the decision of the Ld CIT(A) regarding the non-deduction of Rs.12 lakhs from the sale consideration for calculating capital gains, emphasizing that furniture and fixture are not considered capital assets. The absence of mention of furniture sale in the deeds indicated that it was not part of the property sold, leading to the dismissal of the appeal.
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