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2014 (12) TMI 100 - ITAT MUMBAIAddition u/s 41(1) - Admission of additional evidence under Rule 29 – Held that:- In the absence of the assessee furnishing any details in its respect, or leading any evidence to the contrary, the entire unpaid amount is to be therefore considered as the loss arising to the assessee - thus, i.e., on account of defective work and, accordingly, sought to be compensated to it by paying the creditor less by that amount, so that it was not paid - there is no question of admission of additional evidence under rule 29 of the Rules - the claim of payment, which cannot be regarded as genuine merely because the transaction is per cheque, contradicts the assessee’s own claim of the amount being disputed on account of defective/improper work - there is no explanation as to the basis or the circumstances under which the payment stands made, and for the entire disputed sum - The claim is completely inconsistent with the admitted and exhibited facts and circumstances of the case - the assessee’s application for admission of additional evidence u/r. 29 is denied. It would also need to be explained as to how and why the balance amount of ₹ 1.07 lacs paid by BS to DAC as and by way of interest had not been accounted for or otherwise adjusted between the assessee and BS - The assessee’s accounts for FY 2009-10, as well as for the subsequent years, would only have crystallized and, in fact, also been furnished to the Revenue since - again, what adjustment entries, if any, has BS, an assessee with the Revenue, correspondingly passed in his books of accounts - The onus to establish its’ case, though, would be on the assessee - the assessee shall neither be allowed to raise any new plea, nor one inconsistent with its accounts - The journal entries, purportedly passed on 31/3/2010, are ostensibly corrective entries, passed after due deliberation - The purport of the exercise is to establish the existence or otherwise of the assessee’s liability to DAC as on 31/3/2006, or, as explained, to BS in lieu thereof; the assessee’s accounts being admittedly deficient, with even the ‘corrected’ accounts being in contradiction to the stated position - The AO shall adjudicate the matter by issuing definite findings of the fact after allowing the assessee an opportunity to present its case – decided partly in favour of assessee.
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