TMI Blog2016 (7) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... T DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : None For The Revenue : Shri Ritesh Mishra(D.R.) ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee, being ITA No. 438/Mum/2012, is directed against the appellate order dated 22-11-2011 passed by learned Commissioner of Income Tax (Appeals)- 3, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2007-08, the appellate proceedings before the learned CIT(A) arising from the assessment order dated 18-11-2009 passed by the learned Assessing Officer (hereinafter called the AO ) u/s 143(3) of the Income Tax Act,1961 (Hereinafter called the Act ). 2. The ground of appeal raised by the assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the AO and confirmed by the CIT(A) being 15% of expenses, is ad-hoc ,arbitrary and without any basis. 3. Each of the above grounds is without prejudice to one another. 3. None appeared for the assessee when the appeal was called for hearing. We are proceeding to decide the appeal after hearing the arguments of learned DR and after persuing the material on record, including the paper book filed by the assessee. 4. The brief facts of the case are that the assessee is proprietor of M/s Dungarpur films and engaged in business of production of advertisement films. 5. During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, the assessee was asked to submit the details of following cash exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al with the learned CIT(A). 7. Before the learned CIT(A), the assessee submitted that complete details were submitted before the AO . The assessee submitted that shooting expenses of ₹ 9,63,277/- were considered as cash payments by the AO whereas as per details submitted before the AO, the cash payments are only to the tune of ₹ 2,60,162/- only out of the cash expenditure considered by the AO. It was submitted that books of accounts are audited and expenses are fully vouched and incurred for the purposes of business and hence fully allowable as per law and disallowance made is arbitrary without any basis. The learned CIT(A) observed that the expenses were incurred in cash and the invoices with respect to vouchers substantiati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k (India) Limited for travelling expenses of the assessee s representatives and other expenses incurred for conveyance, telephone and food expenses in foreign country. It was claimed before the learned CIT(A) that full details were submitted before the AO during course of assessment proceedings and these expenses were incurred for business purposes and allowable as per law.Thus , the assessee prayed before the learned CIT(A) that the adhoc addition is arbitrary and need to be deleted as without any basis. The learned CIT(A) held that the details of expenses had been furnished during assessment proceedings also. It was observed by the learned CIT(A) that expenses were incurred through Thomas Cook(India) Limited, Krypton Direct Private Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut any defect in their audit report. The assessee has claimed expenses as deduction from income in his return of income filed with the Revenue with respect to both the issues arising out of this appeal. The primary onus is on the assessee to have come forward and substantiate before the Revenue that the expenses which are so claimed as deduction from the income in Return of income filed before the Revenue , are proved to have been incurred wholly and exclusively for the purposes of the business of the assessee complying with all the requirements and the mandate of Section 37(1) of the Act i.e. the expenses are also not personal or capital expenses. As per the facts emerging from records, the assessee was not able to submit complete details ..... X X X X Extracts X X X X X X X X Extracts X X X X
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