Cost of improvement of a residential flat requires capital...

Cost of improvement of a residential flat requires capital expenditure that adds to or alters the capital asset. Routine repairs and removable articles, including furnishings and de cor not embedded in the property, merely remain associated with the flat and do not qualify; their disallowance was sustained. The description assigned to an item is not conclusive for alleged permanent installations. Their eligibility depends on whether each item is capital in nature and forms an integral addition or alteration to the flat. As the installation and nature of the remaining items had not been examined item-wise, the claim was restored for verification of supporting material and a reasoned determination after hearing the taxpayer.