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Cost of acquision

22 March 2019

some of the construction expenses are paid in CASH in year 2007 (when the property was constructed)
can i take such expenses also as cost of acqision or not.

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7 Replies

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 22 March 2019

you can show those expenses as either cost of acquisition or cost of improvement. make sure that whatever you claim is substantiated by material evidences

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Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 22 March 2019

are the bills available

bhushan dronkar (48 Points)
Replied 22 March 2019

No,the bills are not available now.

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 22 March 2019

then it wud be difficult to claim deduction since if your case comes up for scrutiny then you will be required to provide the proofs

bhushan dronkar (48 Points)
Replied 22 March 2019

ok thank you to both of you.

1 Like

Kamal Verma (Financial advisor) (589 Points)
Replied 23 March 2019

Since cost of improvement was incurred during 2007 which is more than six year back, no evidence must be required by IT authority.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 23 March 2019

@ kamal PLS note that the onus is always on the assessee to prove and produce the details in respect of deductions claimed by him. the AO only verify the genuineness of such details produced by the assessee. so if you do not produce any details then no deduction will be allowed as such. this is normally all AOs point of view

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