TMI Blog2014 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... s – it was not by itself sufficient to establish that the amount was incurred by the assessee on the construction of additional factory building in MIDC, Dombivili - The onus was on the assessee to substantiate its claim for the expenditure incurred on the construction of additional building by producing the relevant documentary evidence such as bills, vouchers etc. - Even if such bills /vouchers were not maintained by the assessee in support of expenditure incurred outside the books of account, the assessee could have and should have substantiated its case by Producing valuation report or building plans showing that the additional construction was indeed made at its factory building situated in MIDC, Dombivali. It is not a case where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Assessee-company filed its return of income on 30. 09. 2009 declaring income of ₹ 3. 60 lakhs. Assessing Officer(AO)finalised the assessment u/s. 143(3) of the Act on 30. 11. 2011, determining the total income of the assessee at ₹ 37. 14 lakhs. 3. During the assessment proceedings, AO directed the assessee to recalculate its allowance for depreciation in view of the fact that in the earlier Assessment Year, AO had disallowed depreciation of ₹ 3. 10 lakhs. The assessee replied that addition made by the AO was confirmed by the First Appellate Authority (FAA), that it had filed an appeal before the ITAT against the order of the FAA, that matter should be kept pending till the disposal of appeal by the Tribunal. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of search, certain loose papers inventorised as pages 7 to 16 were found and seized from the possession of the assessee showing receipts in cash aggregating ₹ 40, 06, 000/. In the statement recorded during the course of search u/s 132(4) of the Act, the assessee explained that the transactions reflected in the said lose papers as that of sale of scrap of drums, screens, nickel, plastic bags, damaged motors, damaged etc. He also agreed that the said transactions were not recorded in the regular books of account and offered an amount of ₹ 40, 60, 000/- as additional income for assessment year 2007-08. In the statement, it was stated on behalf of the assessee that out of the amount of ₹ 40, 06, 000/-, the sum of ₹ 31, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument that the amount in addition of the building was incurred out of the additional income declared on account of sale of scrap and waste in AY 2007-08. As per the provision of the Income Tax Act to the onus is on the assessee to prove the documentary evidence before the AO before claiming any deduction. The Hon ble Supreme Court in the case of CIT V/s Calcutta Agency 19 ITR 119 has held that the onus is on the assessee to prove the genuineness of the expenditure before claiming any deduction We have heard the arguments of both the sides on the issue involved in the appeal filed for the assessment year 2008-09 and also perused the relevant material on record. The ld. Counsel for the assessee has invited our attention to the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the unaccounted sales proceeds of scrap were partly used for building purposes and the assessee also reiterated this position in his statement recorded under section 132(4), we are of the view that the same by itself was not sufficient to establish that the amount of ₹ 31, 08, 000/- was incurred by the assessee on the construction of additional factory building in MIDC, Dombivili. The onus in this regard was on the assessee to substantiate its claim for the expenditure incurred on the construction of additional building by producing the relevant documentary evidence such as bills, vouchers etc. Even if such bills /vouchers were not maintained by the assessee in support of expenditure incurred outside the books of account, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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