Case Law Details
Mayur Muljibhai Madhvani Aries Exports P Ltd. Vs ITO (ITAT Chennai)
ITAT Chennai held that deduction towards purchase of air conditioner, furnishing of curtains, light fittings is allowable as cost of improvement while computing capital gains.
Facts- During the course of assessment proceedings, the AO noticed that the assessee has made investment towards property development to the tune of Rs. 1,35,01,000/-.
The assessee was asked to furnish the name and address of the developer to whom the payment made along with source. In response, the assessee stated that he had incurred expenses to get tenants vacated from the property situated at Porbandar city and further, above expenses is not forming the part of the asset but it has been claimed as expenses whenever the property is sold. The AO, on the basis of details filed by the assessee and also taken note of nature of expenses incurred made additions of Rs. 1,35,01,000/- as unexplained investment in property.
CIT(A), after considering relevant submissions of the assesse, allowed partial relief where he has confirmed additions towards payment made to housing society towards transfer chargers amounting to Rs. 20,05,500/- and expenses incurred towards cost of improvement without supported by any evidence amounting to Rs. 13,54,725/-, however allowed relief in respect of balance amount of expenditure incurred for development of the property. Aggrieved by the CIT(A) order, the assessee is in appeal before us.
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