Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 771 - AT - Income TaxRevision u/s 263 - Addition of prior period expenses - AR made a claim of expenses relating to the previous assessment year to be allowed in this assessment year without producing an iota of evidence to show that the impugned expenses is relating to the assessment year under consideration - HELD THAT:- From the statement of income filed along with revised return, the business income was taken at ₹ 1,86,65,990/-. However, in the computation statement, the gross income was taken at ₹ 2,79,26,864/- even after claiming expenses of ₹ 45,14,322/- and village development expenses of ₹ 16,40,706/- which were not added again in the order passed u/s. 143(3) r.w.s. 263 of the I.T. Act. The assessee has filed audit report u/s. 44AB of the I.T. Act along with the revised return wherein indirect expenses was claimed as expenses relating to prior period. It is seen that the assessee has not come up with any strong evidence in support of his arguments against the order u/s. 143(3) r.w.s. 263 of the I.T Act. It is also seen that there is no proper explanation as to why these expenses were to be allowed when mercantile system of accounting was being followed - genuineness of the claim along with the returns and statements of income itself was not proved in view of various contradictions and discrepancies mentioned above. In the facts and circumstances of the case, the contention of the assessee stands on a weak footing and is without merits. Thus, the addition made by the Assessing Officer is sustained. Claim of the assessee is not supported by any evidence to show that the said expenses are relating to the assessment year under consideration. Being so, we have no hesitation to confirm the addition made by the AO. Accordingly, this ground of appeal of the assessee is dismissed.
|