TMI Blog2016 (6) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... f his business - Held that:- It is not the case of the Assessing Officer that the assessee was unable to adduce satisfactory evidence that the expenditure was incurred for the purpose of his business. When appropriate evidence has been adduced, it is not in the power of the Assessing Officer to arbitrarily disallow any item of expenditure on the ground that the sums are not verifiable. There is no indication as to what step was taken by the Assessing Officer to have those expenses verified. If the Assessing Officer takes no pains to have the expenses verified he cannot resort to disallowing any portion of the expenditure on the ground that they are not verifiable. This was a sheer act of arbitrariness which the Assessing Officer could not h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance to a sum of ₹ 80,000. In other words, the learned Tribunal granted relief to the extent of a sum of ₹ 26,385. 3. The assessee had claimed to have spent a sum of ₹ 4,06,820 on account of expenses of the Mumbai office. Part of the expenses were supported by internal debit vouchers. The Assessing Officer, however, chose to disallow 20 per cent. of such expenses amounting to a sum of ₹ 81,364. The assessee had claimed a sum of ₹ 92,421 and ₹ 39,523 under the heading of 'general expenses and tea and tiffin' respectively, supported by debit vouchers. The Assessing Officer in this case also disallowed 20 per cent. of the expenses amounting to a sum of ₹ 26,389. 4. In an appeal, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer could not have done. The learned Tribunal did not realise the aforesaid position. They chose to bring down the amount of disallowance without any reasons. The question always shall be whether the assessee has been able to prove the expenditure alleged to have been incurred by him for the purpose of his business. If the answer is in the affirmative, no part of the expenditure can be disallowed. But if the answer is in the negative, the entire expenditure may be disallowed. 6. The last item is with regard to silver utensils allegedly sold by the assessee at a loss of ₹ 1,60,562. The Assessing Officer was of the opinion that silver wares being personal effects were not within the purview of the capital assets as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the loss arising out of the sale should have been allowed to be carried forward. 9. We have not been impressed by the submission for the simple reason that the silver utensils, according to the assessee, were purchased in the year 1966-67. The occasion to use the silver utensils for the purpose of business of the assessee arose at least 30 years after the silver utensils were allegedly purchased. Therefore, the silver utensils can by no stretch of imagination be said to have been purchased for the business of the assessee. 10. Both the Commissioner of Income-tax (Appeals) and the Assessing Officer were right in their opinion that the silver utensils were the personal effects of the assessee and the same were out of the purview o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
