2008 (2) TMI 885

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....f"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} SATISH KUMAR MITTAL AND RAKESH KUMAR GARG, JJ. For the Appellant : Yogesh Putney ORDER Rakesh Kumar Garg, J. The revenue has filed the present appeal under section 260A of the Income-tax Act (for short 'the Act') against the order dated 22-12-2006 passed by the Income-tax Appellate Tribunal, Delhi Bench "E", New Delhi in ITA No. 5496/Delhi/04 for the assessment year 1990-91, raising the following substantial questions of law for consideration of this Court :- "(a )Whether on the facts and in the circumstances of the....

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.... assessee took a plea that the payment of Rs. 19.71 lakhs made to three parties which were disallowed by invoking section 40A(3) were expenditure of capital nature and therefore was not covered under the provisions of section 40A(3) of the Act. On such submissions the Tribunal remanded the matter to the Assessing Officer for fresh adjudication. 3. On such remand by the Tribunal the Assessing Officer again took up the issue of disallowance under section 40A(3) of the Act for consideration. The assessee explained in the remand proceedings that the cash payments were made to the parties in question in respect of amounts standing as due and payable to them towards advances and that none of these payments was on account of revenue expenditure d....

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....-15) and a perusal of these documents clearly supports the claim of the appellant that these payments were not in the nature of any expenditure but were to square of the outstanding balances on account of loan and advances. By pointing out to the various erasing and over-writings the Assessing Officer has not been able to show that the payments were indeed on account of any expenditure. The onus was entirely on the Assessing Officer to bring concrete evidence on record to clearly show that the payments were indeed for an expenditure incurred by the assessee in relation to the three different concerns. By simply referring to the cuttings and over-writings the Assessing Officer has not been able to prove that these payments were not in the n....