Burden of proof for deductions and set-offs requires admissible evidence before they can defeat an established sale claim.

A party claiming deductions, set-offs or adjustments against an admitted sale claim must prove those assertions with admissible and reliable evidence. The Delhi High Court noted that the claimant of the outstanding consideration had established supply of goods and part-payment through pleadings, evidence and admissions, so the burden shifted under Sections 101 to 103 of the Evidence Act to the party asserting fake invoice adjustments, discounts, returns and other offsets. Those defences failed because they were unsupported by ledgers, corroborating documents or credible oral evidence, and the alleged return of goods was neither acknowledged nor backed by proper accounting or input tax credit reversal. Uncertified video material under Section 65B also did not prove the defence.

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Issues: Whether the appellant had discharged the burden of proving the claimed deductions and adjustments so as to displace the respondent's proved claim for the outstanding sale consideration and interest.

Analysis: The respondent established supply of goods and part-payment by the appellant through pleadings, evidence and admissions. Under Sections 101 to 103 of the Indian Evidence Act, 1872, the initial burden lay on the party asserting the deductions and adjustments. The alleged fake invoice adjustment, discount, return of goods and other set-offs were not substantiated by ledgers, supporting documents or reliable oral evidence. The relevant portions of the respondent's evidence were not effectively challenged in cross-examination. The alleged return of goods through a debit note was not signed or acknowledged by the respondent, and no material was produced to show reversal of input tax credit or proper accounting adjustment. The video material was also unsupported by the required certificate under Section 65B of the Indian Evidence Act, 1872, and did not establish the defence.

Conclusion: The appellant failed to prove the claimed deductions and adjustments, and the decree for the outstanding amount with interest was rightly sustained.

Ratio Decidendi: A party asserting deductions, set-offs or adjustment of liability must prove them by admissible and reliable evidence, and unchallenged or unproved assertions cannot displace an otherwise established claim.

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