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2022 (9) TMI 1318 - AT - Income TaxDisallowance being 10% of expenditure on the ground that the assessee failed to discharge the onus cast on him by proving the genuineness of the expenditure debited - Onus to prove - HELD THAT:- It is the settled proposition of law that for claiming any expenditure as allowable, the onus is always on the assessee to prove to the satisfaction of the Assessing Officer by furnishing bills and vouchers for such expenditure. However, the assessee in the instant case failed to furnish all the details before the Assessing Officer for which the disallowance of expenditure on estimate basis is justifiable. Disallowance of expenditure @ 10% of the expenditure in the instant case appears to be on the higher side since it gives a profit rate of 37.78% which is not possible in the line of business. Considering the fact that the assessee has already declared profit rate of 9.29%, the disallowance on lumpsum basis in the instant case, in our opinion, meet the ends of justice. We hold and direct accordingly. The grounds raised by the assessee on the first issue of disallowance is partly allowed. Disallowance being 30% of the expenditure (professional services + Contract charges) - As the assessee in its computation of income has suo moto disallowed an amount which includes the amount disallowed by the Assessing Officer. We, therefore, deem it proper to restore the issue to the file of the Assessing Officer with a direction to verify the computation statement and after being satisfied, delete the addition. The 2nd issue raised by the assessee in the grounds of appeal is accordingly allowed for statistical purposes.
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