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2022 (9) TMI 652 - Income Tax
Disallowance of Material Expenses - second round of litigation - allowability of business expenses - HELD THAT:- It is observed that the assessee produced books of accounts before the authorities below and claim is made that complete details of bills/vouchers were furnished . The ledger account of Material Expenses is also furnished before us. Thus, in the facts and circumstances of the case, where the assessee is satisfactorily able to provide details and establish genuineness of Material Expenses claimed to be incurred for business of the assessee - Disallowance by authorities below of which even specific details/breakup of the expenses which are disallowed is not furnished by the authorities below with no specific defects being pointed out, we hold that disallowance as were made by authorities below is not sustainable and we allow these Material expenses which stood disallowance by authorities below, and we order deletion of these additions.
As assessee produced books of accounts as well vouchers/bills before the authorities below and primary onus which lay on the assessee stood discharged, and it is now for the authorities below to bring out specific defects in the books of accounts as well bills and vouchers furnished by the assessee after making necessary enquiries and investigation and the authorities are to point out which expenses are not allowable and reasons thereof, which has not been done by authorities below in this case. Same is the fate of other expenses on account of staff welfare, repairs and maintenance, telephone and mobile expenses and travelling and conveyance, which disallowance also stood deleted. - Decided in favour of assessee.