https://www.taxtmi.com/caselaws?id=783627 In computing LTCG on sale of a house property, the dominant issue was whether the AO could disallow the assessee's claimed cost of improvement with indexation solely on the ground that the expenditure was not "commensurate" with the super built-up area. The ITAT held that the purchase deed showed acquisition of a semi-constructed house, whereas the sale deed showed a fully completed house with fittings and service connections, establishing substantial improvement. The assessee also produced contractor ledgers, bills, vouchers and related documents evidencing construction/improvement, and the AO's objection was based on suspicion without contrary evidence or analysis of construction type and material quality. Consequently, the disallowance/addition sustained by the CIT(A) was set aside and the appeal was allowed. en-us Wed, 10 Dec 2025 00:00:00 +0530 Fri, 19 Dec 2025 08:30:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783627 In computing LTCG on sale of a house property, the dominant issue was whether the AO could disallow the assessee's claimed cost of improvement with indexation solely on the ground that the expenditure was not "commensurate" with the super built-up area. The ITAT held that the purchase deed showed acquisition of a semi-constructed house, whereas the sale deed showed a fully completed house with fittings and service connections, establishing substantial improvement. The assessee also produced contractor ledgers, bills, vouchers and related documents evidencing construction/improvement, and the AO's objection was based on suspicion without contrary evidence or analysis of construction type and material quality. Consequently, the disallowance/addition sustained by the CIT(A) was set aside and the appeal was allowed. Case-Laws Income Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783627