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2023 (5) TMI 410 - ITAT PUNECapital Gain computation - Addition towards indexed cost of improvement - HELD THAT:- The sale deed refers only to some Kutcha construction, that is a part of the sale deed to this effect. This shows that, firstly, the assessee did not adduce any evidence of having done any development work on the property by furnishing the direct invoices for the development work. Secondly, even if it is presumed that the development work was actually carried out as claimed through the estimate/Bill of the developer, it is hard to accept that the development of the property was got done by the assessee before the date of its purchase itself. Thirdly, even if we go with the hypothesis that the assessee actually got the development work, then such development work should have been reflected in the description of the property in the sale deed, which is absent. In view of the foregoing reasons, we are satisfied that the AO was justified in not accepting the claim of indexed cost of development by the assessee. This ground is not allowed. Increase in the proportionate deduction u/s.54F because of the resultant increase in the amount of capital gain for the disallowance of the claim for indexed cost of improvement - AO is directed to verify such claim and allow the same as per law. Needless to say, the assessee will be allowed an opportunity of hearing.
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