Whether personal effects purchased for house allowed for computation of cost of improvement

Last updated: 30 July 2022

Save Share

Quick Summary

The Income Tax Appellate Tribunal ruled that expenses incurred to make a property habitable are allowable as a cost of improvement for capital gains calculations, including indexation benefits. However, costs associated with personal effects like furniture, refrigerators, and televisions are not eligible for deduction. The tribunal also remanded the issue of claiming housing loan interest as a cost of acquisition back to the assessing officer for further verification.

Court :
ITAT Mumbai

Brief :
The amount spent on cost of improvements to make the property habitable allowable as deduction and indexation while computing the capital gains however the amount spent on personal effects such as refrigerator, air conditioner LED, TVS furniture, dining table etc are not eligible for deduction.

Citation :
ITA No.1200/Mum/2020

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

392 Views Comment Share Income Tax Report

Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

View Judgements

Comments