Case Law Details
Hiren Himmatsingh Rathod Vs ITO (ITAT Ahmedabad)
It is a fact that the assessee had incurred the cost for making the new property inhabitable before taking over possession of the same but considering the provision of the act we do not find any embargo in granting relief to the assessee under Section 54 of the Act. Bonafide expenses incurred for making the new house habitable though prior to possession but before the completion of the time limit prescribed is found to be allowable.
We have further considered the judgement passed by the Coordinate Bench in the matter of Shriniwas R. Desai vs. ACIT(OSD) in ITA No. 1245 and 2432/Ahd/2010 wherein it was held that there is no restriction on the buyer from incurring any construction expenditure on improvisation or supplementary work of ready-made unit. The additional expenses so incurred would be eligible for qualifying investment under Section 54 of the Act.
Taking into consideration the entire aspect of the matter particularly when the assessee has incurred expenditure for making the new property habitable within the stipulated time as framed by the provision of law and particularly when such expenditure has not been doubted by the authorities below respectfully relying upon the ratio laid down by the Coordinate Bench as narrated hereinabove the assessee is found to be entitled to the exemption of Rs.14,00,000/- as the expenditure incurred.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Please become a Premium member. If you are already a Premium member, login here to access the full content.
