JAYSUKHLAL DODHIA,THANE vs. INCOME TAX OFFICER, WARD 42(1)(2), MUMBAI

ITA 3770/MUM/2026Status: DisposedITAT Mumbai31 August 2026AY 2023-247 pages
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What were the facts?

The assessee claimed a deduction for the cost of improvement of an ancestral property under Section 48 of the Income Tax Act. The Assessing Officer disallowed the claim, and the CIT(A)/NFAC upheld this decision. The assessee appealed to the ITAT.

What did the Tribunal hold?

The Tribunal held that while contemporaneous documentary evidence for improvements made over a long period might be unavailable, a fair and reasonable estimate of the cost of improvement is allowable. The Tribunal estimated the cost of improvement at Rs. 5,50,000/-.

What were the issues?

Whether the cost of improvement to an ancestral property, incurred over a long period without contemporaneous documentary evidence, is allowable as a deduction under Section 48 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 48,Section 55

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SHRI SANDEEP GOSAIN

Pronounced: 31.08.2026

PER SHRI SANDEEP GOSAIN, JUDICIAL MEMBER:

This appeal is filed by the Assessee against the order of Ld. NATIONAL FACELESS APPEAL CENTRE (NFAC) DELHI vide DIN: ITBA/NFAC/S/250/2025-26/1085063912(1) dated 22-Jan-2026 for the Assessment Year 2023-24. The Assessee has raised the following grounds of appeal:

ITA 3770/MUM/2026 JAYSUKHLAL DODHIA

1) On the facts and in the circumstances of the case and as per the law, the National Faceless Appeal Centre/Commis

The order continues below.

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