Construction Cost Disallowance in Capital Gains Set Aside; AO to Examine Valuation Report

Manjunatha Narayanaswamy Manchanayakanahalli Vs Deputy/ACIT (ITAT Bangalore) Construction Cost Cannot Be Disallowed Entirely While Computing Capital Gains – Matter Remanded to AO to Examine Valuation Report The assessee sold a property consisting of land with a constructed residential building and claimed deduction of construction cost while computing capital gains. The AO rejected the claim on the ground that the assessee had not produced documentary evidence such as bills or vouchers to substantiate the construction expenses. The CIT(A) also confirmed the disallowance of the constructi...