TMI Blog2017 (6) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid accessories which are required to render call taxi services cannot said to be items of capital expenditure. They are installed in the taxi owned by a third party. Therefore these items of expenses have to be regarded as revenue expenditure. We are of the view that the expenses in question cannot regarded to be as capital expenditure. Nevertheless allowability of expenses in question u/s 37(1) of the Act is also dependent on the condition that these expenses were incurred by the assessee for the purpose of business of the assessee. We therefore set aside the order of CIT(A) and remand the question to the AO for fresh consideration with a liberty to the assessee to file evidence to show incurring of these expenses by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le while computing income from business. According to the AO the assessee was requested to furnish details and evidence of incurring of miscellaneous expenses and justify the quantum of expenses with reference to the volume of business. According to the AO the assessee had not filed any evidence regarding incurring of expenses and also had not explained the justification of these expenses with reference to the volume of business of the assessee. In this regard the AO also observed that during the previous year the assessee had receipts only to the extent of ₹ 3,90,183/- from driver rental and recruitment receipts. The AO also noticed that in the books of accounts of the assesee only a sum of ₹ 7,40,692/- which was 1/5th total ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Assessment record was called for and verified. On verification of the assessment record it is seen that appellant has merely given various broad heads under which the expenditure was incurred. No other details of expenditure such as bills/vouchers or at least name, address and amount of payment made was furnished. From the broad heads given, it is seen that most of the heads of expenditure are in the nature of capital expenditure which was not allowable u/s 37 of the I.T Act Even otherwise the appellant has not discharged the onus cast upon him on the assessee to prove the expenditure claimed by it Reliance is placed on the decision of CIT vs. Modistone Ltd. 206 Taxman 123 (Delhi). In view of the above it is held that AO had correctly di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Against MDT 266,000 53,200 212,800 Vehicle Registration Exp. 348,443 69,689 278,754 Advance Driver Recruitment 129,099 25,820 103,279 Advance Taxi Operations 446,462 89,292 357,170 3,703,460 740,692 2,962,768 8. In the course of assessment proceedings, the AO issued a notice dated 26.10.2005 u/s 142 (1) of the Act in which he had called for certain details. The details with regard to the miscellaneous expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the aforesaid accessories which are required to render call taxi services cannot said to be items of capital expenditure. They are installed in the taxi owned by a third party. Therefore these items of expenses have to be regarded as revenue expenditure. With regard to the findings of CIT(A) that the bills and vouchers, names and address of the person to whom payments were made were not furnished by the assesee, we have already seen that the assessee was not called upon to furnish all these details in the notice dated 26.10.2005 issued u/s 142 (1) of the Act by the AO. Nevertheless in the order of assessment the AO has observed that the evidence for incurring these expenses were not furnished. It was therefore necessary for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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