TMI Blog2013 (11) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the ld. CIT(A), should have remanded the matter to the A.O. with a direction to the assessee to produce the relevant documentary evidence to support and substantiate his claim for the expenses – Matter remanded to the AO for fresh adjudication. Onus to prove creditor - Addition on account of sundry creditors treating the same as unexplained/unproved – Addition u/s 68 of the Income tax Act – Held that:- Onus in this regard was on the assessee to establish that the concerned creditors were genuine and since this onus was not discharged by the assessee by producing the supporting documentary evidence, this issue also should be restored to the file of the A.O. for deciding the same afresh. - I.T.A. No.73 /Mum/2011, C. O. No. 199/Mum/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een called for along with bills / voucher for verifications. However assessee has failed to produce the same even after giving ample opportunity. Thus without any details i.e bills/vouchers payment details etc. the undersigned has no alternative but to disallow 20% of the said expenses at 49,74,493/-, which works out to Rs,9,94,899/- and add the same to the total income. Penalty proceedings u/s 271(1)(c) of the I.T. Act are initiated for giving inaccurate particulars/concealment of income. Unexplained liabilities - loans and Sundry Creditors: On verification of balance sheet it is seen that, the assessee has shown, inter alia, liability on account of unsecured loan at Rs.5,80,000 and sundry creditors at Rs.4,95,0831- without any details i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me is added to the total income. Penalty proceedings u/s 271(1)(c) of the I.T. Act are initiated for giving inaccurate particulars/concealment of income. 3. Against the order passed by the A.O. u/s 144 of the Act, an appeal was preferred by the assessee before the ld. CIT (A) challenging the validity of the said assessment as well as disputing the additions made therein by the A.O. on merit. After considering the submissions made on behalf of the assessee and the material available on record, the ld. CIT(A) held that there was no legal infirmity in the action of the A.O. in completing the assessment ex-parte u/s 144 of the Act. As regards the additions made by the A.O. to the total income of the assessee in the said assessment, the ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the A.O. treating the agricultural income shown by the assessee as income from other sources, the ld. CIT(A) restored this issue to the file of the A.O. with a direction to verify from the past records as to whether the assessee was showing such agricultural income regularly in earlier years. The ld. CIT(A) thus allowed substantial relief to the assessee and aggrieved by the order of the ld. CIT(A), the Revenue has preferred this appeal on the following grounds:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the A.O. amounting to Rs.9,94,899/-, being 20% of the expenditure debited in the profit and loss account, without considering the fact that the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A) was not justified in holding that the burden was on the A.O. to bring on record some positive adverse material to show that the expenses claimed by the assessee to the extent of 20% were not genuine so as to justify the disallowance of such expenses. The burden, in our opinion, was on the assessee to support and substantiate his claim for the expenses by establishing that the same were wholly and exclusively incurred for the purpose of his business and when this burden was not discharged by the assessee, the ld. CIT(A), in our opinion, should have remanded the matter to the A.O. with a direction to the assessee to produce the relevant documentary evidence to support and substantiate his claim for the expenses. In this view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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