ITAT Directs AO to Allow Indexed Cost of Improvement & Recompute Capital Gains

Ashwin Kapur Vs ACIT (ITAT Delhi) Introduction: The appeal by Ashwin Kapur against the final assessment order dated 19.01.2023 is based on the denial of indexed cost of improvement for the property sold during the assessment year 2020-21. The Assessing Officer (AO) disallowed the renovation expenses claimed by the assessee, leading to a challenge and subsequent proceedings before the Dispute Resolution Panel (DRP). Detailed Analysis: During the assessment year, the assessee sold a property and claimed a deduction under section 48 of the Income Tax Act. The claimed renovation expenses of Rs.9,5...