Deduction towards the development expenses is one of the most common expenses which is claimed by the assessee while computing the capital gain. Often the assessee dont have the documents in such cases as it pertains to earlier years which may even be beyond 6 years or 10 years period.

Here is one such case before Pune ITAT as under:

Rohan Pereria (ITAT/1957/PUN/2016)

Short overview of the case:

Facts:

1. The Assessing Officer made an addition of Rs.62,21,737/- by disallowing the development charges incurred on sale of land situated at Baner, Pune for want of evidence.

2. CIT(A) confirmed the action of the Assessing Officer as the appellant had failed to substantiate the expenditure incurred on development of land during the period from 1988-89 to 2006-07.

The ITAT Pune held as below:

1. The appellant had not produced any evidence in support of the expenditure incurred on development of land.

2. Therefore, there is no merit in the contentions raised by the appellant and so the claim of development expenses cannot be allowed.