https://www.taxtmi.com/caselaws?id=754682 The ITAT Pune upheld CIT(A)/NFAC's decision allowing cost of improvement and section 54 deduction for LTCG computation. The AO had denied cost of improvement claiming no prudent person would wait three years without sale deed reference and payments were made only after show cause notice. The AO also denied section 54 deduction for incomplete construction within statutory timeframe. The tribunal found Revenue had accepted identical cost of improvement claims for the assessee's spouse (co-owner) without appeal, establishing precedent. CIT(A)/NFAC correctly determined the assessee satisfied all section 54 conditions by selling old asset and acquiring new residential property. Revenue's appeal was dismissed on both grounds. en-us Tue, 25 Jun 2024 00:00:00 +0530 Fri, 28 Jun 2024 16:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754682 The ITAT Pune upheld CIT(A)/NFAC's decision allowing cost of improvement and section 54 deduction for LTCG computation. The AO had denied cost of improvement claiming no prudent person would wait three years without sale deed reference and payments were made only after show cause notice. The AO also denied section 54 deduction for incomplete construction within statutory timeframe. The tribunal found Revenue had accepted identical cost of improvement claims for the assessee's spouse (co-owner) without appeal, establishing precedent. CIT(A)/NFAC correctly determined the assessee satisfied all section 54 conditions by selling old asset and acquiring new residential property. Revenue's appeal was dismissed on both grounds. Case-Laws Income Tax Tue, 25 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754682