TMI Blog2015 (9) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... - Held that:- The assessee has pleaded that the amount was contributed from own capital and reserve and surplus. However, the assessee has not filed a copy of the balance sheet for my consideration. Hence, not in a position to appreciate the argument of the assessee counsel. Accordingly, this issue is remitted back to the file of the Assessing Officer for fresh consideration with a direction to the assessee to file the balance sheet as on 31.03.2007 before the Assessing Officer explaining the investment and the Assessing Officer would decide the issue afresh. - Decided in favour of assessee for statistical purposes. - I.T.A. No.1313/Mds/2015 - - - Dated:- 2-9-2015 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER For The Appellant : Shri. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005-06 31.12.2009 Rs.92834/- 2006-07 31.12.2009 Rs.96098/- 2007-08 31.12.2009 Rs.118936/ - 2008-09 31.12.2009 Rs.315452/- During the course of assessment proceedings, for all the assessment years under appeal, the assessee had admitted Adayam income, commission and interest receipts as his income, but claimed expenses towards salaries, foreign travel expenses and others. These expenses, as per the Assessing Officer could not be attributed to have been incurred for earning the above income. As the assessee could not provide pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the reason of the Assessing Officer for disallowing the expenses claimed against Adayam/ Commission receipts. Though the assessee had explained the nature of his business, however, no details, as called for with regard to earning of income and incurring of expenditure had been furnished. The assessee explains that many north Indian consumers who are not regular/fixed come to Sivakasi to place orders with fireworks factories at Sivakasi and that the assessee himself or through a part-time employee books fireworks orders to other fireworks factories for the purpose he goes along with the customers to other fireworks factories advise them to select varieties and bargaining them with price etc. The customers may not be regular or fixed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was pertinent to mention here that the assessee states that the customers only visit his place of business, i.e. Sivakasi then it was not known as . to how and why the assessee would be incurring travelling expenses, including foreign travel expenses. No bills or vouchers, with regard to any expenditure has been brought on record by the assessee even during the course of appeal proceedings. It was a settled law that for making a claim of expenditure to be allowable as business expenditure under section 37 of the Act, the onus is on the claimant assessee to prove that the expenditure had been incurred wholly and exclusively for the purpose of its business. It is considered relevant to reproduce-the extracts of the decision of High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. 7. The fact of the case are that the assessee had invested C8 lacs as share capital and C5 lakhs as advance. The sources for the investment were examined by the Assessing Officer. The assessee furnished necessary bank account copies and the sources as below: (i) LIC policy loan from SBI : C5,00,000/- (ii) ithdrawal from M/s. Sqny Gremites : C5,00,000/- (iii) Withdrawal from Personal funds : C3,00,000/- On verification, it was found that there was no sufficient cash balance in his personal accounts to source for C3 lacs. The assessee has not brought any ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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