The Income Tax Appellate Tribunal(ITAT), Mumbai bench ruled that the revision cost and the advantages of due indexation on house property are deductible during calculating the capital gain.
The petitioner, Komal Gurumukh Sangtani is an NRI and under section 139 he does not furnish the return. The assessing officer reopened the assessment post to issue the notice u/s 148 of the act saying that she sold 2 residential flats which are owned by her husband Shri Gurumukh I Sanghani. AO refused the deduction for the cost of revision of the property, on calculating the capital gains the advantage of the indexation on the interest furnished on the housing loan. CIT(A) has confirmed the assessment order thus the petitioner has approached Income Tax Appellate Tribunal (ITAT).
The petitioner mentioned that she is an individual and not responsible for any tax audit and also she does not secure any kind of income. The AO accepted the concern that the taxpayer together with her husband claimed the housing loan via HDFC ltd and would file the loan account information.
The petitioner moreover articulated that no bar is to the taxpayer to make some expenditure for the house in cash. Provided that the source for the mentioned cash payment would elaborate from the shown taxpayer’s income, no issue can be attributed to the taxpayer.
The Coram of Mr Vikas Awasthy, Judicial Member, and Mr M.Balaganesh, Accountant Member ruled that we specified that the taxpayer would be entitled to the deduction including with her husband amounting to Rs 9,68,575 for the cost of revision incurred in the house which would be lessened during calculating the capital gains in the taxpayer’s hands and in the hands of the husband. The taxpayer, as well as her husband, will be entitled to the due indexation advantage on that. Mr Rajendra Chandekar appeared on the grounds of the petitioner.
