https://www.taxtmi.com/caselaws?id=12589 Deductibility of equipment hire charges turned on whether the assessee discharged the primary onus of proving that the expenditure was genuine, reasonable, and incurred wholly for business purposes. As to payments to one vendor, the HC held that mere book entries and internal authorisation do not establish a genuine commercial transaction, and found the supporting documents unreliable; the concurrent factual findings warranted disallowance, so the deduction was denied and the appeal was dismissed to that extent. As to payments to the other vendor, the HC held that payment by account-payee cheques was a vital indicator of genuineness and reasonableness wrongly excluded from consideration; the onus was satisfied, the disallowance was set aside, and deduction was allowed to that extent, resulting in a partly allowed appeal. en-us Mon, 11 Feb 2002 00:00:00 +0530 Tue, 23 Dec 2025 16:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12589 Deductibility of equipment hire charges turned on whether the assessee discharged the primary onus of proving that the expenditure was genuine, reasonable, and incurred wholly for business purposes. As to payments to one vendor, the HC held that mere book entries and internal authorisation do not establish a genuine commercial transaction, and found the supporting documents unreliable; the concurrent factual findings warranted disallowance, so the deduction was denied and the appeal was dismissed to that extent. As to payments to the other vendor, the HC held that payment by account-payee cheques was a vital indicator of genuineness and reasonableness wrongly excluded from consideration; the onus was satisfied, the disallowance was set aside, and deduction was allowed to that extent, resulting in a partly allowed appeal. Case-Laws Income Tax Mon, 11 Feb 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12589