ITAT Bangalore: Cost of Construction Cannot Be Fully Disallowed; Matter Remanded to AO for Fresh Verification & Valuation

Musheer Ahamed Vs ITO (ITAT Bangalore) Cost of Construction Cannot Be Fully Disallowed – Matter Restored to AO for Fresh Verification & Valuation – ITAT Bangalore ITAT Bangalore held that where construction on a property is evident from purchase and sale deeds, the cost of improvement cannot be outrightly disallowed merely due to lack of complete supporting bills. The assessee sold a property for ₹85 lakh and claimed construction cost and selling expenses, which were rejected by AO and confirmed by CIT(A) for want of documentary evidence. The Tribunal noted that comparison of purchas...