Allowability of 50% of claimed indexed construction costs due to lack of sufficient evidence

Meena Gupta Vs ACIT (ITAT Delhi)

Conclusion: Denial of the entire expenditure incurred towards as cost of construction by AO could not be held to be justified even if assessee did not submit satisfactory bills/vouchers in support of her claim towards the cost of construction. An amount of Rs.3,94,860/- for the FY 2009-10 was paid for Stamp Duty, MCD Map fee and MCD Development charges which reinforced the fact that the building that was sold was constructed on which expenses were definitely incurred. Therefore, AO was directed to allow 50% of the indexation claimed

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