https://www.taxtmi.com/caselaws?id=755567 ITAT Delhi allowed the assessee's claim for deduction under section 54 of the Income Tax Act, ruling that capital expenditure incurred to make a newly purchased property habitable constitutes part of the purchase consideration. The tribunal held that expenses for electrification, water facilities, wooden works, glass works, cooking facilities, bathroom fittings, and painting were necessary to bring the uninhabitable flat into livable condition, not mere renovation expenses as claimed by lower authorities. The AO and CIT(A) had wrongly denied the exemption without cogent reasons, distinguishing the expenditure from the purchase cost. en-us Fri, 12 Jul 2024 00:00:00 +0530 Mon, 15 Jul 2024 08:19:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755567 ITAT Delhi allowed the assessee's claim for deduction under section 54 of the Income Tax Act, ruling that capital expenditure incurred to make a newly purchased property habitable constitutes part of the purchase consideration. The tribunal held that expenses for electrification, water facilities, wooden works, glass works, cooking facilities, bathroom fittings, and painting were necessary to bring the uninhabitable flat into livable condition, not mere renovation expenses as claimed by lower authorities. The AO and CIT(A) had wrongly denied the exemption without cogent reasons, distinguishing the expenditure from the purchase cost. Case-Laws Income Tax Fri, 12 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755567