Indexed Cost of Renovation Allowed in Part: ITAT Grants Partial Relief to Assessee in Long-Term Capital Gain Dispute

Indexed Cost of Renovation Allowed in Part; ITAT Grants Partial Relief to Assessee in Long Term Capital Gain Dispute The Income Tax Appellate Tribunal (ITAT) has granted partial relief to an assessee in a long-term capital gain dispute by allowing the indexed cost of renovation in part. The tribunal recognized that expenses incurred for renovation and improvement of a capital asset can be factored into the cost of acquisition for calculating long-term capital gains, but likely scrutinized the quantum of such expenses. This decision benefits taxpayers by reducing their capital gains tax liability on assets that have undergone significant improvements.