Satisfactory bills & Vouchers not produced – Denial of entire expenditure not justified while computing capital gain : ITAT Delhi
Denial of entire expenditure towards cost of construction while computing Capital Gains by the Assessing Officer cannot be held to be justified even if the assessee did not submit satisfactory bill / vouchers towards cost of construction
In the case of Meena Gupta v/s ACIT, Delhi [ITA No. 464/Del/2019], Hon’ble Delhi Tribunal held that where there is no dispute that there was a building which was sold during the year on which capital gains was offered to tax, denial of entire cost of construction by the Assessing officer (AO) is not justifiable even if the assessee has not submitted any bills / vouchers for the cost of construction.
Therefore, Hon’ble Tribunal after considering the facts in its entirety, directs AO to allow 50% of the indexed cost of construction claimed as indexed cost of construction.
The copy of the order is as under: