AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 271
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....] whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 10/12/2018, passed under Section 143(3) of the Act for the Assessment Year 2016-2017. 2. The present appeal was delayed by 86 days. In the application seeking condonation of delay it has been stated that the delay was inadvertently caused on account of the impugned order having been received in the spam folder. The Assessee only got knowledge of the impugned order passed only when the tax consultant logged in income tax portal for income tax filing of the Assessee. After hearing both the sides and taking into consideration the explanation offered by the Assessee, we condone the delay of 86 days in filing the present appeal and proceed to adjudicate the ....
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.... it is seen that the major expenses are for renovation of building". In the assessment stage itself, the Assessing Officer was convinced about the expenses but his only objections is that whether this addition cost is allowable as part of new flat u/s 54F. The first appellate authority failed to consider the same. Copy of bank statements from which the above payments were made are submitted before the first appellate authority. Copy of the same is attached as Exhibit I. Copy of detailed list of expenses are attached as Exhibit II. Hence, your appellant pray to allow the additional cost incurred Rs. 26,94,260/- as part of cost of new asset and may be allowed u/s 54F. 3. Your appellant also rely upon the decision of ITAT Ban....
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....ent under Section 143(3) of the Act vide Assessment Order, dated 10/12/2018. The Assessing Officer restricted the deduction claimed by the Assessee under Section 54F of the Act to INR. 2,03,79,316/- as against INR. 2,24,25,368/- claimed by the Assessee in the return of income. Further the Assessing Officer also restricted the deduction claimed by the Assessee under Section 80C of the Act to INR. 70,462/- as against eligible claim of INR. 1,50,000/- made by the Assessee. 5. Being aggrieved, the Assessee preferred the appeal before the Ld. CIT(A) challenging the aforesaid addition/disallowance. Ld. CIT(A) vide Order, dated 06/03/2025, dismissed the aforesaid appeal. 6. Being aggrieved, the Assessee has now preferred the present appeal b....
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....t is not disputed that the Assessee had incurred expenses after the purchase of residential property. The claim of the Assessee is that the Assessee had incurred additional cost/expenses in INR. 31,29,112/- consisting of the following: Nature of Expenses Amount INR) Interior works 20,42,683 Electrical and plumbing Expenses 2,10,565 Labour 3,69,000 Mis Exp 53,952 Purchases 4,52,912 31,29,112 7.1. Out of the above expenses, the Assessee had claimed deduction under Section 54F of the Act with respect of expenses aggregating to INR. 26,94,260/- since the same were incurred to make the residential property habitable. In this regard we find that the Assessing Officer had returned the follo....
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....were mainly for interior work and the bills prove that the work done is painting, Sofa work, Split ac, Wardrobes, Electrical fittings, Bath room showers, modular kitchen etc. These items are only fixtures and are not an essential part of house to make it habitable. M/s. Shobha group is one of the famous high cost flat builders and they deliver self contained and complete flats only. The flats will contain standard bathrooms, kitchen, electric points etc. Modern Electrical fittings, AC. modern showers, modern kitchen are optional and are not an essential item. The expenses claimed even include house warming expenses." 7.2. The above findings returned by Assessing Officer in respect of expenses of INR.14,61,117/- are concerned, the s....