TaxTMI 
TaxTMI 
2022 (7) TMI 1638
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..... We proceed to dispose of these appeals by hearing the Id. DR and after perusing the materials available on record. 2.1. Let us take up the appeal of the assessee in ITA No. 1200/Mum/2020 for A.Y. 2010-11 in the case of Komal Gurumukh Sangtani. 3. We have heard the Id. DR and perused the materials available on record. We find that assessee is an individual NRI and had not filed her return of income u/s.139 of the Act for A.Y.2010-11. The assessee had entered into a property transaction during the year along with her husband resulting in capital gains. Since, no return of income was filed, the ld. AO reopened the assessment after issue of notice u/s. 148 of the Act. The facts that are relevant for the purpose of adjudication of the issue of capital gains are as under :- 3.1. The assessee purchased two residential flats jointly with her husband Shri Gurumukh I Sangtani in the building known as "The Breezy Corner", Mahavir Nagar, Kandivili (W), Mumbai. The details of the said purchases are as under :- SI. No . Flat No. Purchased Area of the flat Date of Purchase Purchased from Purchased in the name Amount of Purchase (Rs.) Stam....
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.... provided name and address hence enquiry Not possible 2. ..... Mr. Gurmukh Sangtani 10.8.2006 Painting & POP on Wall Cash 1.21,000 "A" not provided name and address hence enquiry Hot possible 3. Mangalam Hardware Malad Mrs. Komal Sangtani 24.7.2006 Safety Door Cash 49,000 Notice u /s.133(6) dtd. 14.12.2017 issued but no reply received 4 ..... Mr. Gurmukh Sangtani 10.8.2006 POP in hall, 190 sq. ft. Cash 98,000 "A" not provided Name and address hence enquiry not possible 5 ...... Mr. Gurmukh Sangtani 10 8.2006 POP in three bedroom 90,000 "A" net provided name and address hence enquiry Not possible 6 Furniture & Mattress Goregaon Mr, Gurmukh Sangtani 10.8.2006 6 Chair W/Dining Table Set, Centre Table & Seater, Four Leather Sofa Set Cash 1,23,300 Notice u/s. 133(6) dtd. 14.12.2017 issued, but no reply received. 7 Casarano Mrs. Komal Sangtani 15.8.2006 Wall Unit, Bed Set, Side Table, Dressing lablf Cash ....
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.... amount of Rs.62,276/- was duly mentioned. Since assessee could not provide the entire repayment schedule and the appropriation of EMI towards principal and interest portion thereof by HDFC Ltd., and that the assessee had bifurcated the interest by her own calculations by arriving at the interest figure of Rs.19,233/- per month on fixed amount basis, the ld. AO disbelieved the same and did not give deduction towards interest on housing loan to be part and parcel of cost of acquisition while computing capital gains. The ld. AO also observed that assessee would have claimed interest on housing loan as a deduction under the head `income form house property' u/s.24 of the Act in the returns of income. Accordingly, he observed that assessee is not entitled for deduction u/s.48 of the Act while computing capital gains. With these observations, he denied the benefit of deduction and correspondingly, the indexation benefit thereon on the interest paid on housing loan component while computing capital gains. 3.6. The assessee always pleaded that the purchase of various items as tabulated supra were made in order to make the house habitable and proper for living condition which is ver....
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.... to get added to the cost of acquisition or cost of improvement of the property and consequently not eligible for deduction while computing capital gains. With regard to claim of deduction towards interest of housing loan to be added to the cost of acquisition, the ld. CIT(A) upheld the action of the ld. AO. 3.8. At the outset, from the perusal of the list of aforesaid expenditure as detailed in the 3rd table supra, we are in complete agreement with the arguments advanced by the assessee before the lower authorities with the aforesaid expenses were incurred only in order to make the house habitable. From the perusal of the list of expenses incurred as stated supra, we find that majority of the items are embedded to the wall and becomes part and parcel of the building itself which is subject matter of sale by the assessee and her husband. Of course in the said list, items like refrigerator, air conditioner, LED Tvs, furnitures, dining tables etc., would certainly fall under the ambit of "personal effects" not liable for deduction. However, in respect of remaining items, the assessee would certainly be eligible for deduction as it becomes an integral part of the building. Accordin....