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TMI Blog2019 (3) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 declaring an income of Rs. 22,00,93,190/-. During the course of assessment proceedings, the Assessing Officer observed that during the search operations, it was observed that the assessee group has booked substantial expenses under the head 'Advertisement expenses.' Some of the expenses do not appear to be genuine/justified. The A.O. noted that in the proceedings of the post search investigation, vide questionnaire dated 16th July, 2012, the assessee was asked to provide the details of the advertisement expenses. From the various details furnished by the assessee, it was observed that there are number of parties to whom advertisement expenses have been booked, but, no address or PAN have been provided. He, therefore, asked the assessee to explain as to why the advertisement expenses booked from such parties may not be treated as bogus due to the absence of evidence to prove the identity of the parties. Rejecting various explanations given by the assessee, the Assessing Officer made addition of Rs. 2,03,82,486/- treating the above advertisement expenses as not genuine and, therefore, he treated the sum as unexplained expenditure by invoking the provisions of section 69C of the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sufficient and necessary documentary evidences. Such evidences could be in the form of Bills and vouchers and evidences of actual receipt of goods or services. However, the AO has straightway concluded that the identity of the parties in whose name advertisement expenses have been booked was not established by the appellant. 4.2.14 I do not consider that in case of an expenditure booked by the assessee, there is any initial onus on him to prove the identity of the parties by providing the PAN details etc. What is required is the availability of Bills and vouchers and these would themselves contain all the name and addresses of the party who had supplied goods or services. In the present case there is no finding that the AO has bothered to look at the documents such as bills and vouchers in respect of advertisement expenses maintained by the assessee. This is a search and seizure case and it is expected that authorities would be having access to the documents and books maintained by the assessee. The AO is required to ascertain if there is any deficiency in the maintenance of important documents like bills and vouchers in respect of the expenses claimed in the P & L A/c. 4.2.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. There is no requirement under the law that the assessee has initial onus to prove the identity, genuineness and creditworthiness of the parties from whom he has received goods and services. Therefore, this approach of the AO cannot be supported. 4.2.18 As regards the non-compliance to notice u/s 133(6) by the third parties, it is noted that the AO has come to conclusion that the transaction involved with the said third party could be bogus, merely because the party has chosen not to answer the AO's question. In the case of expenses incurred by the assessee and duly reflected in the books of accounts, the requirement is that the assessee should maintain proper bills and vouchers and evidences for having purchased the goods or for having incurred expenses. The initial onus cast upon him would stand discharged once he is able to show the entries in the books of accounts and provide supporting evidences as such as bills and vouchers. In the present case, it is not the case of AO that the appellant did not have necessary entries in the books of accounts regularly maintained by it. It is also not the AO's case that the necessary bills and vouchers were not found with the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year has already been assessed under section 143(1) /143(3) which could not abate on the date of search" 5.1 Identical grounds have been raised for the other years also. 6. Referring to the decision of the Tribunal in the case of ACIT vs. Devyani International Ltd. and vice versa, he submitted that the Tribunal, under identical facts and circumstances, has admitted the ground raised under Rule 27 of the IT(AT) Rules, 1963 and in the absence of any incriminating material found during the course of search has quashed the proceedings u/s 153A of the IT Act. He submitted that since in the instant cases also no incriminating material was found during the course of search and the additions were made on the basis of entries already entered into the books of account, therefore, in view of the decision of Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla reported in 61 taxmann.com 412, the entire proceedings u/s 153A has to be quashed. 7. The ld. DR, on the other hand, supported the order of the Assessing Officer. 8. We have considered the rival submissions made by both the sides and perused the material available on record. A bare perusal of the assessment order shows ..... X X X X Extracts X X X X X X X X Extracts X X X X
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