Late Sharad Shankar Kale Vs ITO (ITAT Nagpur)
Indexed Cost of Improvement Partly Allowed on Estimation – Tribunal Grants 80% Relief Considering Construction Evidence Death of Assessee – ITAT Nagpur
The AO denied deduction of indexed cost of improvement while computing capital gains on sale of immovable property due to lack of documentary proof. Assessee contended that a triple-storeyed residential building existed on the property and reasonable improvement cost had been incurred.
ITAT noted that though supporting bills were not available, the registered sale agreement clearly reflected construction on the property and Revenue failed to dispute the existence of the building. Considering peculiar facts, including death of the assessee and representation by legal heir, Tribunal adopted a justice-oriented approach and allowed 80% of the claimed improvement cost for indexation, directing AO to recompute capital gains accordingly. Appeal partly allowed.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
This appeal at the instance of the assessee is directed against the order of Ld. ADDL/JCIT-6, Kolkata [“CIT(A)”], dated 20/06/2024 passed u/s. 250 of the Income Tax Act, 1961 (for short, ‘the Act’) which is arising out of assessment order dated 14.10.2019 passed u/s. 143(3) r.w.s. 148 of the Act by the ITO, Ward-5(1), Nagpur, for the Assessment Year 2014-15 (A.Y.)
