Assessee sold his residential house and claimed cost of improvement. It was held that since all improvements made necessarily lead to improvement in value of sale, assessee was entitled to deduction towards cost of improvement, thus allowing expenses incurred for installation of lift and other sundry expenses to make house habitable as cost of improvement. (AY. 2016 -17)
Rajiv Ghai v. Asst. CIT(IT) [2024] 109 ITR 439 (Delhi)(Trib)
S. 48 : Capital gains -Cost of improvement –Selective reading of sale agreement could not necessarily lead to disallowance- Expenses incurred to make house habitable allowable as deduction. [S. 45, 54, 54F]