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2014 (7) TMI 344 - AT - Income TaxDepreciation on additional construction - proof - assessee contended that, unaccounted sales proceeds of scrap were utilized for the construction of factory building – Held that:- The decision in SV. Business Pvt. Ltd. C/o Shankarlal Jain and Associates Versus Dy. Commissioner of Income Tax [2014 (6) TMI 144 - ITAT MUMBAI] followed - There was no infirmity in the order of CIT(A) confirming the disallowance made by AO on account of assessee’s claim for depreciation on additional construction of factory building in MIDC, Dombivili - the unaccounted sales proceeds of scrap were partly used for building purposes – it was not by itself sufficient to establish that the amount was incurred by the assessee on the construction of additional factory building in MIDC, Dombivili - The onus was on the assessee to substantiate its claim for the expenditure incurred on the construction of additional building by producing the relevant documentary evidence such as bills, vouchers etc. - Even if such bills /vouchers were not maintained by the assessee in support of expenditure incurred outside the books of account, the assessee could have and should have substantiated its case by Producing valuation report or building plans showing that the additional construction was indeed made at its factory building situated in MIDC, Dombivali. It is not a case where the statement or relevant seized documents are partly accepted and partly rejected by the authorities as sought to be contended by the assessee - It is the case where the statement and the relevant seized documents were not sufficient to establish the case of the assessee of having spent an amount for the construction of additional factory building and the claim of the assessee for depreciation on such additional building as disallowed by authorities below on the ground that the assessee failed to substantiate the claim by bringing any documentary evidence - thus, there was no infirmity in the order of the CIT(A) in disallowing the assessee’s claim of and confirming the disallowance – Decided against the assessee.
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