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2016 (8) TMI 468 - AT - Income TaxBogus expenditure - Guinness of expenditure - Held that:- Once the assessee has proved with necessary evidences that the expenditure incurred is genuine, the A.O. cannot disallow the expenditure simply on assumption or surmises basis by holding that the contractor does not have requisite experience in handling this kind of contracts. Whether the contractor itself do the work or get the work done by others was not a matter of subject with the assessee as long as there was no interruption with the work. The assessee is concerned whether the contractor has executed the work or not? In the present case on hand, on perusal of the facts available on record, we find that the assessee has furnished all the details necessary to prove the expenditure claimed is genuine. There is no reason for the A.O. to disbelieve the evidences filed by the assessee. The A.O. simply harping upon the fact that the contractors does not have experience, therefore, opined that the expenditure claimed by the assessee is bogus and cannot be allowed. But the assessee has categorically proved that the expenditure claimed is genuine in nature and also furnished necessary evidences before the A.O. to prove his case. Another important point to be noted here is that the A.O. during the course of assessment proceedings recorded statement from the Managing Director of the company and also Managing Partner of the firm wherein both the parties have confirmed that they have supplied or rendered the services to the assessee. Therefore, we are of the view that the A.O. without any reasons simply disbelieved the evidences filed by the assessee and disallowed the expenditure. The CIT(A) without appreciating the facts confirmed the additions made by the A.O. Hence, we set aside the order passed by the CIT(A) and direct the A.O. to allow the expenditure claimed by the assessee. - Decided in favour of assessee
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