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2010 (12) TMI 621 - ITAT, MUMBAIDisallowance of expenses - The assessee is a civil and telecom contractor - The assessee has incurred expenses as labour and sub-contract charges - Held that: it is evident from the record that the assessee has not produced any evidence in the form of bills/vouchers and even the complete details of the expenditures in support of the claim made by the assessee - Therefore, the assessee has failed to prove the claim to the satisfaction of the lower authorities - Do not find any reason to interfere with the order of the CIT(A) on this issue who has already restricted the disallowance to 10% which is, just and proper - Hence, appeal decided against the assessee. Exemption of capital gain u/s 54 - the assessee has simply stated that he has complied with the provisions of by investing capital gain with Neelsiddhi Enterprises. However, as mentioned above and as per the receipts, there is no investment. An investment as require u/s 54 may be of direct purchase or booking of a property under construction. However, the assessee has not even booked a flat - He has given an amount to the builder and now the builder has stated that the amount is not for booking but reservation of a flat which may be converted into booking later on but at the same time the reservation may be cancelled also and not necessary to be converted into booking - Therefore, assessee's claim of exemption u/s 54 is disallowed. Addition for capital introduced - Though the assessee has filed the ledger account showing the capital introduced as well as bank statement and the account of the assessee in the Corporation Bank of India - However, it is not clear from the details filed by the assessee about the cash amount introduced by assessee of Rs.80,000/- and also an amount of Rs.1 lakh through cheques dated 20.08.2005 because corresponding entries is not in the statement of bank account - Hence, issue required proper verification and examination at the level of the AO and the assessee has to reconcile all the amounts introduced in the capital account during the year - Accordingly, set aside this issue to the record of the AO for verification and examination of the relevant record to be filed by the aseseee then decide the same as per law.
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