https://www.taxtmi.com/highlights?id=83359 The assessment order was passed without verifying the allowability of the cost of improvement as per Section 55(1)(b)(2), rendering it erroneous and prejudicial to Revenue's interests. The assessee's claim for cost of improvement, comprising interior work, kitchen appliances, plywood flooring, and tiles, is allowable u/s 55(1)(b)(2) as the expenses were capital in nature, enhancing the property's value. The assessee submitted a valuation report and bank statements as evidence, which the AO examined and accepted. The CIT emphasized the need for a more in-depth inquiry, citing Explanation 2 to Section 263, but Section 263 cannot be invoked merely because the inquiry was not conducted as per the CIT's preference. The AO conducted adequate inqu..... en-us Mon, 25 Nov 2024 08:45:51 +0530 Mon, 25 Nov 2024 08:45:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=83359 The assessment order was passed without verifying the allowability of the cost of improvement as per Section 55(1)(b)(2), rendering it erroneous and prejudicial to Revenue's interests. The assessee's claim for cost of improvement, comprising interior work, kitchen appliances, plywood flooring, and tiles, is allowable u/s 55(1)(b)(2) as the expenses were capital in nature, enhancing the property's value. The assessee submitted a valuation report and bank statements as evidence, which the AO examined and accepted. The CIT emphasized the need for a more in-depth inquiry, citing Explanation 2 to Section 263, but Section 263 cannot be invoked merely because the inquiry was not conducted as per the CIT's preference. The AO conducted adequate inqu..... Highlights Income Tax Mon, 25 Nov 2024 08:45:51 +0530 https://www.taxtmi.com/highlights?id=83359