| Question And Answer | |
|---|---|
| Subject: | ALLOWABLE EXPENSES UNDER SEC 54 TO MAKE THE FLAT HABITABLE SO THAT EXEMTION CAN BE CLAIMED |
| Category: | Income-Tax |
| Querist: | SHARANGADHANVA BABURAO JALIHAL |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | Expenses to make flat habitable |
| Date: | December 6, 2022 |
I have purchased flat recently which is in unfinished or semi finished condition.ie wardrobe cabinets not in place,kitchen platform , kitchen cabinets not in place,interior not done at all.
Pl let me know what are the expenses allowed under sec 54 to complete interior of the flat so that exemption can be taken.
On the facts of the querist at the time of purchase of flat, the said flat was unfinished or semi-finished condition or wardrobe cabinets, kitchen platform, and cabinets not in place. Assessee incurred expenditure after purchasing property, said additional expenses incurred by the Assessee would be eligible as qualifying investment under section 54 of the Act . In Shrinivas R. Desai v. ACIT (2013) 145 ITD 12 (Ahd)(Trib.) held that the expenditure to make property habitable even after purchasing the unit, the additional expenses so incurred would be eligible for qualifying investment under Section 54 of the Act . In Rajat B Mehta v. ITO [2018] 169 ITD 178 (Ahd ) Trib.) held that where there were separate agreements for sale of house and sale of furniture which assesse make after purchase of property for make flat habitual, claim for deduction under section 54 would be allowable in entirety.