Appeal Dismissed: Lack of Evidence on Bank Guarantee & Depreciation Claims

The Tribunal dismissed the appeal regarding the disallowance of Rs. 6,60,000 for Bank Guarantee written off and Rs. 1,03,664 for Depreciation. The decisions were based on the lack of evidence provided by the appellant to substantiate the claims, resulting in the failure to meet the burden of proof required. The disallowances were upheld as the appellant could not prove the genuineness of the amounts in question, leading to the dismissal of the appeal.

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Issues:
1. Disallowance of Rs. 6,60,000 on account of Bank Guarantee written off.
2. Disallowance of Rs. 1,03,664 on account of Depreciation.

Issue 1: Disallowance of Rs. 6,60,000 on account of Bank Guarantee written off:

The assessee claimed Rs. 6,60,000 as expenses under "DBD for Bank Guarantee Written off," stating the amount was untraceable and unrecoverable. The Assessing Officer (AO) disallowed this claim as the assessee failed to prove the genuineness of the amount written off. The CIT(A) upheld the disallowance as the appellant provided no evidence to substantiate the claim. The Tribunal affirmed the CIT(A)'s decision, noting the lack of proof from the assessee to establish the amount's nature or its inclusion in previous income. The onus was on the appellant to prove the claim's genuineness, which was not fulfilled, resulting in the dismissal of the appeal.

Issue 2: Disallowance of Rs. 1,03,664 on account of Depreciation:

The AO disallowed Rs. 1,03,664 from the depreciation claimed by the appellant, as discrepancies were found in the depreciation charts submitted. The appellant failed to explain the anomalies pointed out by the AO, leading to the depreciation being restricted to Rs. 9,10,491, as per the Tax Audit Report. The CIT(A) upheld this decision, as the appellant could not provide any supporting evidence to justify the disallowance. The Tribunal affirmed the CIT(A)'s ruling, emphasizing the lack of a certificate from the Tax Auditor to validate any error in the audit report. Without such certification, the authorities' findings were upheld, resulting in the dismissal of the appeal.

In conclusion, the Tribunal dismissed the appeal of the assessee concerning the disallowance of Rs. 6,60,000 on account of Bank Guarantee written off and the disallowance of Rs. 1,03,664 on account of Depreciation. The decisions were based on the lack of substantiating evidence and failure to meet the burden of proof required to support the claims made by the appellant.

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