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2019 (6) TMI 1289 - AT - Income TaxAddition u/s. 40A(2)(b) - payment made for getting sales lead from related party - neither furnish details of such sales leads nor details of business actually generated through those leads - HELD THAT:- Thus, in nut shell the assessee could not prove that these payments made to its related party were actually incurred wholly and exclusively for the purposes of business of the assessee. The assessee has also not filed any paper book even before tribunal containing evidences to prove that these expenses were incurred wholly and exclusively for the purposes of business of the assessee. The onus is on the assessee to prove that these reimbursement of expenses to related party were wholly and exclusively incurred for the purposes of business of the assessee , which the assessee in the instant case failed to discharge. There is no material on record to prove that these expenses were incurred for business of the assessee, we are inclined to confirm additions as were upheld by CIT(A) and hence we are not inclined to interfere with well reasoned appellate order passed by CIT(A). - Decided against assessee Purchase of gold coins - allowable business expenses u/s 37(1) - HELD THAT:- Assessee has purchased gold coins to the tune of ₹ 4,16,333/- which it claimed to have given as gift for business purposes . The assessee although had given the list of the persons to whom gold coins were gifted but the nexus of gift of gold coin to business of the assessee could not be proved. The assessee could not prove that these expenses were incurred wholly & exclusively for the purpose of business of assessee and that the assessee did infact generated business from the persons to whom gift of gold coins were given. The onus is on the assessee to prove that it satisfied mandate of Section 37(1) that these expenses were incurred wholly and exclusively for the purposes of the business of the assessee and these expenses were neither personal expenses nor capital expenses, which the assessee had failed to discharge in the instant case. - Decided against assessee.
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