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2019 (6) TMI 281 - AT - Income TaxDisallowance on account of purchase of material - HELD THAT:- AO has noticed that some bills/vouchers were missing and the assessee has also accepted that vouchers might have been misplaced due to work at various sites or many a times, these would have been incurred out of imprest account. However, the findings of the AO could not be rebutted properly. Therefore, the lower authorities are justified in making addition. The primary onus lies upon the assessee to prove the expenses claimed in the profit and loss account. The assessee has submitted before the CIT(A) that all payments were made by account payee cheques, but he had not produced complete bills and vouchers before the AO. We, therefore, do not find any justification to interfere with the order of the CIT(A) on this addition. Disallowance out of vehicle expenses - it is observed that the depreciation is included in it - HELD THAT:- The depreciation is fixed expenditure in nature whether it is used exclusively for the business or partially for personal use. Thus, the element of some personal use has no role to play while granting depreciation on vehicle. Therefore, the assessee deserves deduction of depreciation and rest of the addition deserves to be sustained for want of proper verification. In respect of telephone expenditure, we are of the opinion, that the ld. CIT(A) has rightly dealt with this issue and we do not find any justification to interfere with the same. It is also mentioned that principle of res judi cata is not applicable in the income-tax proceedings and the income of the assessee is assessed on the basis of facts and circumstances attending to a particular year. Accordingly, the appeal of the assessee deserves to be partly allowed.
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