ITAT Grants Partial Relief in NRI’s Cost of Construction Disallowance; Deletes Cost of Improvement Addition

Joseph Puthenpurayil Augusthy Vs DCIT (ITAT Cochin) In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Cochin Bench has provided partial relief to a non-resident Indian (NRI) assessee, Joseph Puthenpurayil Augusthy, significantly reducing the disallowance of construction costs made by tax authorities. The Tribunal restricted the addition to Rs. 10 lakh, a substantial reduction from the initial disallowance of approximately Rs. 1.3 crore, and entirely deleted the disallowance related to the cost of improvement. The case pertains to the assessment year 2012-2013. Joseph Puthenpurayil A...