TMI Blog2015 (11) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... onal expenses of the assessee) of ₹ 3,35,134/- are genuine and the same are incurred or laid out wholly and exclusively for the purpose of the business or profession carried on by the assessee. Merely saying that the purchase of ₹ 61134/- out of total purchases of ₹ 3,35,134/- are incurred through banking channels is not sufficient until the assessee prove by cogent evidence’s that the expenses are incurred wholly and exclusively for the purpose of business or profession carried on by the assessee . Since , the assessee could not produce any cogent material even before us to establish that the said expenditure is neither capital expenditure nor personal expenses of the assessee and is incurred wholly and exclusively for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessing officer in the assessment order u/s 143(3) of the Act and as confirmed by the CIT(A) in the first appellate proceedings and the assessee is directed to appear before the assessing officer to satisfy that all the ingredients of the section 68 of the Act are duly complied with by the assessee about the identity, creditworthiness and genuineness of these loan transaction. - Decided in favour of assessee by way of remand. - ITA NO 1899/Mum/2014 - - - Dated:- 28-9-2015 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Smt. Hiral Sejpal For The Revenue : Abani Kanta Nayak ORDER Per Ramit Kochar, Accountant Member This appeal by the assessee is direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 be deleted. . 2. The facts of the case in brief are that assessee is a software engineer and doing work for Zee Entertainment Enterprise Ltd. During assessment proceedings , the assessing officer observed that assessee has debited purchase of ₹ 3,35,134/- in the Profit Loss Account. The assessee was asked to explain these purchases along with proof thereof. The assessee submitted that no proof and details are available in respect of these purchases and he is unable to explain the same. Hence the assessing officer disallowed these purchases of ₹ 3,35,134/- and added to the income of the assessee in the assessment order dated 16th December 2010 passed u/s 143(3) of Income Tax Act,1961(Hereinafter called the Act ). 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer and confirmed by the CIT(A). 6. The Ld. DR relied upon the orders of authorities below. 7. We have considered the rival submissions and perused the relevant material on record. We have observed that the assessee has failed to produce the details as well bills/invoices for purchases to the tune of ₹ 3,35,134/- for verification before the authorities below rather the assessee has admitted before the authorities below that it has no details/invoices of such purchases as the same were purchase from grey market. The assessee has claimed ₹ 3,35,134/- as revenue expenditure to be set off against business income in the Return of income filed with Revenue, the primary and initial onus is on the assessee to prove that the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce parties for verification. The assessee neither filed any proof of loan nor produced parties for verification before the assessing officer . The assessee stated before the assessing officer that he is unable to produce the parties before the assessing officer as he does not want to embarrass the friends and relatives who helped the assessee in need. Therefore, the assessee offered the amount of ₹ 2,14,000/- representing loans from friends and relatives for taxation as additional income. Since the assessee could not produce any proof of loans nor produced parties for verification and further the assessee offered the same as additional income, the claim of the loan of ₹ 2,14,000/- was not accepted by the assessing officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer which was submitted by the assessing officer vide remand report dated 02nd August 2013. However, the orders of authorities below does not contain any discussions about these loan confirmations and about satisfaction that ingredients of Section 68 of the Act are complied with. These loan confirmations of ₹ 1,95,000.00 filed by the assessee need verifications by the authorities below and also assessee has to discharge the primary onus/ burden cast u/s 68 of the Act with respect to loans of ₹ 1,95,000/- raised from close relatives. The interest of justice will be best served if the matter is restored to the file of assessing officer for de-novo consideration with respect to these loans of ₹ 2,14,000/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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