Capital gain - cost of improvement

Sir/Ma'am,

I am computing capital gain where assesse has stated cost of improvement w.e.f 1981 on his house property but does not have any receipts for the same.

All these COI are before FY 2007.

 

Please guide me, Its an Urgent Matter

1. Whether Assessing Officer can ask for the receipts of improvement or such COI expense being beyond four years from the end of the relevant Assessment Year will not be asked for

2. Whther such Cost of improvement can be challenged by Assessing Officer? If Yes, then what to do.

 

Thank You

Replies (2)

ITO may open the file and ask for more info on computing capital gain. Someone I know showed large COI without any bills to reduce his capital gains. He was lucky to not receive any enquiries. But everybody may not be lucky, so if the ITO demands bills to support COI, then the ITO will disallow the deduction if bills are not available.

Thank You sir,

But If the COI is correct and genuine but the expenditure was done by assesse's father and assesse does not have the biils,

then what should I do ??

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