Exp. Incurred on Installation of Lift in House to be Allowed as Cost of Improvement for Capital Gain Purpose | ITAT

Case Details: Rajiv Ghai vs. ACIT - [2024] 160 taxmann.com 509 (Delhi-Trib.)

Judiciary and Counsel Details

• • Saktijit Dey, Vice-president & Dr. B.R.R Kumar, Accountant Member
  • Shray & Ms Neha Tripathi, Advs. for the Appellant.
  • Sanjay Kumar, Sr. DR for the Respondent.

Facts of the Case

During the relevant assessment year, the assessee had sold his residential house. While furnishing the return of income, the assessee claimed a deduction for the cost of improvement from the Long-term capital gains.

Meanwhile, in the assessment proceedings, the Assessing Officer (AO) noticed that the cost of improvement was claimed for the expenses incurred for installing the Lift. Contending such installation as not essential for making the house habitable, AO denied the claim of cost of improvement.

On appeal, the CIT(A) confirmed the disallowance made by AO and the matter reached before the Delhi Tribunal.

ITAT Held

The Tribunal held that the assessee submitted a handwritten note signed by a person admitting the receipt of such amount. The AO did not dispute importing a pneumatic vacuum elevator (PVE). He held that it was not essential for the improvement of the house to make it habitable.

It was found that the father of the assessee, who was 90 years old, was staying with the assessee, which was also a fact on record before the AO. Accordingly, it was held that the amount incurred for the installation of the Lift is an allowable item for the cost of improvement.