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TMI Blog2023 (6) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... nloading charges - Rs.19,35,558/- 2. On facts and circumstances of the case and in law Ld.CIT(A) erred in confirming Disallowance of expenses of Rs.19,35,558/- without appreciating the fact that these expenses are properly supported by bills and vouchers and such expenses are allowed in earlier years and also after date of survey and were in conformity of gross profit rate of business of earlier years and subsequent year and trade practice in assessee's line of business." 3. The assessee is an individual, filed the return of income for A.Y. 2019-20 on 09/10/2020 declaring an income of Rs.14,76,240/-. The return was processed under section 143(1) of the Income-tax act, 1961 (in short, 'the Act'). The assessee is proprietor of M/s Tirupati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. On perusal of cash book, the Assessing Officer noticed that the assessee had claimed Rs.19,35,558/- as expenses pertaining to the period upto the date of survey which were not recorded in the cash book found during the course of survey and the same have been booked and thereafter in the cash book produced during the assessment proceedings. The assessee submitted that the cash book was not updated as on the date of survey though the assessee had incurred expenses from the first date of the financial year upto the date of survey and that post the survey, the assessee had updated the cash book. The assessee also submitted that these are genuine expenses incurred by the assessee during the course of business in relation to mainly transportat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able period of one or two days. However, in the instant case, the assessee has conveniently chosen to produce the relevant vouchers after a lag of more than three years from the date of the Survey i.e at the time of the assessment proceedings. The AO has thus rightly treated the expenses claimed vide these expense vouchers as bogus. Moreover, coming to the genuineness of these vouchers,, the AO has pointed out number of defects in these vouchers which again make them liable .for rejection. The AO has pointed out very categorically that only Xerox copies were furnished and no the original vouchers were produced. While most of these vouchers had been prepared against 'diesel charges' and all were for an* amount below Rs.20,000/-, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses and because of the timing delay in booking the expenses cannot be the reason for treating them as non genuine and making addition towards the claim. 6. The Ld.DR, on the other hand, submitted that vouchers cannot be treated as proper evidences without bills and that the assessee could not substantiate the claim of expenses properly and, therefore, the lower authorities have rightly treated the expenses as bogus. 7. We heard the parties and perused the materials on record. During the course of hearing, the bench called upon the Ld.AR to produce the cash expenses incurred by the assessee for financial years relevant to AYs 2016-17, 2017-18 and 2019-20 in order to analyse the trend of expenses which have been incurred in the similar way ..... X X X X Extracts X X X X X X X X Extracts X X X X
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