TaxTMI 
TaxTMI 
2015 (9) TMI 1230
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....alary C15,000, Travelling expenses C10,480/- Telephone C12,450/- and general expenses C4,258/-) for earning the commission receipts C1,29,450/-. (2) The Respectable Commissioner of Income Tax (Appeals)-19, Chennai was not justified while passing the order confirming addition towards investment in Spny Stones Pvt. Ltd C3,00,000/- made out of income and savings''. 3. The facts of the case are that there was a search u/s.132 of the Act in the case of Shri K. Vigneshkumar, son of Shri P. Karvannan, Managing Director of M/s. Sony Fireworks Private Limited. Books of accounts, documents and other materials relating to the assessee and the group concerns were found and seized/impounded. Originally before the search the assessee had not filed an....
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....t to the total income of the assessee. The details of assessment order passed u/s.143(3) rws 153A are given below: Asst. Year Date of asst.order Income assessed 2005-06 06.12.2010 Rs.118850/- 2006-07 06.12.2010 Rs.130850/- 2007-08 06.12.2010 Rs.461124/- 2008-09 06.12.2010 Rs.363310/- Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 4. Regarding first issue the Commissioner of Income Tax (Appeals) observed that the reason of the Assessing Officer for disallowing the expenses claimed against Adayam/ Commission receipts. Though the assessee had explained the nature of his business, however, no details, as called for with regard to earning of income and incurring of expenditur....
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....008, the assessee had not file any return of income for any of the assessment years under appeal, though the same were due before the date of search. No evidence with regard to actual incurring of expenditure has been furnished and thus when the actual source of income, claimed to be business income, is not known, then the eo-relation of the expenses with the source of income and the expenses having been incurred wholly and exclusively for such business is not established. It was pertinent to mention here that the assessee states that the customers only visit his place of business, i.e. Sivakasi then it was not known as . to how and why the assessee would be incurring travelling expenses, including foreign travel expenses. No bills or vouch....
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....ny expenditure, it is the duty of the assessee to prove that expenditure was incurred wholly and exclusively for the purpose of business and also the assessee shall produce relevant evidence for the same. Since, the assessee has not produced required evidence, the lower authorities are justified in disallowing the claim of the assessee. This ground of the assessee is dismissed. 6. The next ground raised by the assessee is with regard to investment in Sqny stones Pvt. Ltd. 7. The fact of the case are that the assessee had invested C8 lacs as share capital and C5 lakhs as advance. The sources for the investment were examined by the Assessing Officer. The assessee furnished necessary bank account copies and the sources as below: ''(i) LIC ....