ARUN KUMAR GOELA,NEW DELHI vs. ITO, WARD- 46(1), NEW DELHI

The present appeal has been filed by the assessee against the order of the ld. CIT(A)-16, New Delhi dated 12.07.2018.

The small issue involved in this case is that the total sale consideration for one floor of the building was Rs.2,12,50,000/. The cost of construction was Rs. 1,13,37,500/- and the indexed cost of the building was Rs.55,11,885/-. The amount paid for vacating the occupants and the rent paid for relocation thereof has to be included in the expenses of construction which the AO has denied to allow. Since, the relocation expenses of the existing occupants is also an allowable component of cost of construction, the peculiar facts of the instant case and the 2 Arun Kumar Goela agreement entered with the developer, the appeal of the assessee deserves to be allowed.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 29/09/2021.