2018 (10) TMI 2018

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.... facts and circumstances of the case, order is bad in law as well as on facts. 2. That excluding the cost incurred or making the house habitable from the cost of improvement in the Residential House without pinpointing any amount invested for Luxury/Comfortable items thereby making the additions of Rs.20,97,988.00 and confirmed by the Learned CIT(Appeal) is highly unjustified." I.T.A .No. 148/RPR/2014 "1. In the facts and circumstances of the case, order is bad in law as well as on facts. 2. That excluding the cost incurred or making the house habitable from the cost of improvement in the Residential House without pinpointing any amount invested for Luxury/Comfortable items thereby making the additions of Rs.24....

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....diture/ of the house. The AO also accepted the claim of deduction of Rs. 53,03,650/- purchase of ready built house u/s 54F of the Act. However, relating to claim of deduction of Rs. 20,26,948/-, he made further enquiries in order to ascertain whether the house was habitable at the time of purchase or it genuinely required repairing or remodeling to make it habitable. He examined the issue in the light of the decision of ITAT, Mumbai Bench in the case of Salem Fazelbhoy Vs. DCIT (2006) 9 SOT 601 and made addition of Rs.20,97,988/- as income from 'Long Term Capital Gain'. 5. Being aggrieved by the assessment order, the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal of the assessee. 6. The Ld. AR submitted tha....

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....xpenditure did not come in the ambit of Section 54F as per the Assessing Officer's decision. The Ld. AR submitted that these findings were only observations and no reasons were given in the assessment order regarding denial of Section 54F benefit. The Ld. AR submitted that the assessee is a regular income tax assessee, and the expenses incurred by the assessee houses are meant for comfortable living. The Ld. AR relied upon various decisions. 4. The Ld. DR relied upon the order of the Assessing Officer and the CIT (A). 5. We have heard both the parties and perused the material available on record. It is pertinent to note that there is an observation of the Assessing Officer that the house was habitable and given for rent for 7 months. ....