Who decides house improvement claims? ITO, Inspector or Neighbours?

Meenakshi Subramaniam – [2021] 133 taxmann.com 125 (Article)

ITO to assessee: My income tax inspector pressed the doorbell of your house four times. But, nobody opened. It shows your house improvement claim was false, because even the doorbell was not repaired. I have disallowed your section 54 home improvements. ?
Assessee: But, sir, the doorbell did not ring, because there was no electricity in the area, for some time!!!?

Recently, in Asstt. CIT v. Sambandam Dorairaj [2021] 133 taxmann.com 40 the Chennai Tribunal in stinging rebuke said that the income tax inspector made enquiries with neighbours and relying on their statements told his officer, that no house improvement had taken place. The AO came to the same conclusion and disallowed the entire expenditure of 23 lakhs.

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