Demand of proof - payment of repairs

[Rajagopal Ramachandran]

Respected Sir! Assessee spent Rs 85,000 for repairs in the year 1984 on a apartment bought in 1975 for Rs 45,000 after 10 years due to poor condition. The apartment was sold for Rs 50 lacs in the year 2005 For computation of capital gain tax the assessee took into consideration the repairs costs when calculating the capital gain. AO is demanding bills and invoices for money spent in the year 1985 - afte 20 years. Assessee is unable to produce such receipts since its more than 20 years. Partial payment is reflected in bank statement for the repair payment without any receipt of payment voucher. My question how can AO demand proof of payment to repairs on the flat after 20 years. Can anyone guess the situation. The assessee is senior citizen 92 years old now. ANy suggestion for the retired government officer who is 92 years now.Thanks

AI Summary

Proof of repair expenses may be supported by alternative contemporaneous evidence, enabling capital gains cost claims.
Demand for proof of repair expenditure concerns the AO's satisfaction about correctness of capital gains claims; when original bills are missing, the assessee may rely on alternative evidence such as bank payment entries, balance sheets, employer declarations, contractor or self declarations, photographs, municipal valuation changes, and registered valuer opinions. Establishing the fair market value as on 01.04.1981 and applying indexation is an alternative that can reduce reliance on original cost and improvement receipts.