Assessee had purchased a flat and incurred expenditure of Rs. 23 lakhs for purpose of renovating house. Inspector visited house, took photographs and also made enquiry with neighbours who said that they were not aware of improvements done by assessee.  On basis of reports submitted by Inspector, Assessing Officer concluded that assessee had not carried out any improvement and accordingly, he disallowed entire amount.  Commissioner (Appeals) directed Assessing Officer to allow improvement cost to extent of Rs. 18 lakhs opining that if Assessing Officer wanted to know exactly about improvement works carried out by assessee, he should have enquired through a builder who constructed building instead of neighbours. On appeal the Tribunal held that  disallowance made by Commissioner (Appeals) to extent of Rs. 5 lakhs was fair and reasonable. (AY. 2013-14)