Disallowance of Indexed Construction Costs for Lack of Evidence: ITAT allows 50% as Reasonable Estimate

The ITAT allowed a reasonable estimate of construction costs in the absence of clear evidence for indexed construction costs. In this case, the taxpayer claimed a deduction for construction costs but was unable to provide full documentation. The tribunal accepted a reasonable estimate of the costs based on available data and adjusted for inflation. This ruling highlights the flexibility allowed in determining deductions when documentary evidence is incomplete but a reasonable basis for estimation exists. It ensures that taxpayers are not unfairly penalized for lack of documentation when a valid estimate can be established.