Exp. Incurred on Installation of Lift in House to be Allowed as Cost of Improvement for Capital Gain Purpose | ITAT
- News|Blog|Income Tax|
- < 1 minute
- By Taxmann
- |
- Last Updated on 21 March, 2024
Latest from Taxmann
Case Details: Rajiv Ghai vs. ACIT - [2024] 160 taxmann.com 509 (Delhi-Trib.)
Judiciary and Counsel Details
-
- Saktijit Dey, Vice-president & Dr. B.R.R Kumar, Accountant Member
- Shray & Ms Neha Tripathi, Advs. for the Appellant.
- Sanjay Kumar, Sr. DR for the Respondent.
Facts of the Case
During the relevant assessment year, the assessee had sold his residential house. While furnishing the return of income, the assessee claimed a deduction for the cost of improvement from the Long-term capital gains.
Meanwhile, in the assessment proceedings, the Assessing Officer (AO) noticed that the cost of improvement was claimed for the expenses incurred for installing the Lift. Contending such installation as not essential for making the house habitable, AO denied the claim of cost of improvement.
On appeal, the CIT(A) confirmed the disallowance made by AO and the matter reached before the Delhi Tribunal.
ITAT Held
The Tribunal held that the assessee submitted a handwritten note signed by a person admitting the receipt of such amount. The AO did not dispute importing a pneumatic vacuum elevator (PVE). He held that it was not essential for the improvement of the house to make it habitable.
It was found that the father of the assessee, who was 90 years old, was staying with the assessee, which was also a fact on record before the AO. Accordingly, it was held that the amount incurred for the installation of the Lift is an allowable item for the cost of improvement.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
