Cost of improvement for capital gain exemption

This query is : Resolved

Kapil Sachdeva (Querist)
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22 February 2018 Assessee bought land in 1999 showed cost of improvement as Rs 2.65 lakh in 1999, 25 lakh in 2009, 12 lakh in 2011. He sold property in 2013 and availed capital gain exemption due to indexed cost of land and cost of improvement. But there is no document attached for this cost of improvement. Whether cost of improvement allowed once or as many times. Can we disallow in absence of no proof of such expense.

Arpit

Arpit (Expert)
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22 February 2018 While assesse can claim cost of improvement any number of times but they should have proper evidence to support that improvment has been done. There are various case laws where cost of improvement while computing capital gain on sale was rejected as assessee failed to establish his claim of renovation being carried out in said property with any cogent or reliable evidence. I am citing one such case law for your reference

IN THE ITAT PATNA BENCH : Yashovardhan Sinha v. Income-tax Officer

I hope that the same will help you in establishing your case or to put your point forward