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2014 (7) TMI 957 - AT - Income TaxCommission expenses – Onus to prove - Held that:- The onus to establish the expenditure as incurred for the purposes of business/profession is squarely on the assessee – Relying upon Lachminarayan Madan Lal vs. CIT [1972 (9) TMI 4 - SUPREME Court] - CIT(A)’s decision is based on incomplete enquiry by the AO u/s.133, has misled himself - It is only after the assessee has discharged the initial onus on him to establish the nature of the expenditure and its nexus with the assessee’s trade, that the verification by the AO shall assume significance - The inchoate nature of the verification process would be of no moment, and it would be wholly incorrect to say that the disallowance stood effected for that reason - The matter is wholly factual, and stands to be decided, in the final analysis, on the assessee having, or not so, discharged the burden of proof on it – thus, the restoration of the disallowance is ordered – Decided in favour of Revenue. Repairs and maintenance expenses – Held that:- The fact that the assessee established his business premises, commenced work without undertaking the repairs, and continued to do so for five years, itself, if at all, disproves the claim of it being in a shabby condition when let – there was the absence of the basic or primary material in the form of bill/s, voucher/s, to evidence the repair work; the rent deed, etc. -The expenditure remains, consequently, completely unproved – thus, the disallowance is restored – Decided in favour of Revenue.
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