Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Income under the head 'business and profession' would be earned by incurring relevant expenditure. While unjustified expenditure could be disallowed, there are limits to the documentation and evidence a normal business would maintain. The assessee meticulously maintained documents, deducted tax at source on payments to vendors executing turnkey projects. The CIT(A) failed to appreciate the limits on evidence a business entity would have to justify expenditure. The assessee provided detailed documents justifying the expenditure incurred. Relying on judicial precedents, the burden of proof on the assessee regarding proving expenditure u/s 37(1) has limits and cannot be mainly disallowed on the grounds adopted by the Assessing Officer. Disallowance u/s 37(1) was deleted, decided in favor of the assessee.
Income under the head 'business and profession' would be earned by incurring relevant expenditure. While unjustified expenditure could be disallowed, there are limits to the documentation and evidence a normal business would maintain. The assessee meticulously maintained documents, deducted tax at source on payments to vendors executing turnkey projects. The CIT(A) failed to appreciate the limits on evidence a business entity would have to justify expenditure. The assessee provided detailed documents justifying the expenditure incurred. Relying on judicial precedents, the burden of proof on the assessee regarding proving expenditure u/s 37(1) has limits and cannot be mainly disallowed on the grounds adopted by the Assessing Officer. Disallowance u/s 37(1) was deleted, decided in favor of the assessee.
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