TaxTMI 
TaxTMI 
2017 (10) TMI 1456
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.... this fact. Sh. Kewal Krishan Gupta has also admitted this fact before the AO. Sh. Kewal Krishan Gupta was paid on account of renovation of old building. The authorities below have not brought any material on record for justifying the contention of the assessee. 4. That the Authorities below did not appreciate that the payment was made by the assessee- company through payees account cheque and this fact has been duly admitted by Sh. Kewal Krishan Gupta. In view of these circumstances the addition of Rs. 500000/- confirmed by the worthy CIT(A) is not called for and the same may be deleted. 5. That again the worthy CIT(A) has grossly erred in confirming the addition of Rs. 10,31,906/- on account of repair and renovation of the property. The authorities below did not appreciate that this was an old matter and the amount was spent on the repair and renovation of the said old building. The authorities below did not appreciate that necessary proof was filed in the shape of certificate of Architect. It is relevant to point out that the AO if at all was not satisfied with the same he could have summoned the Architect u/s 131 for enquiring the correctness of the facts. The assessee al....
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....n furnished during the course of regular assessment and also at the time of appellate proceedings and had been considered and found unacceptable at that time also. Mere furnishing of quotation is not sufficient to prove that the actual renovation was made and the amount has actually been spent. The assessee could not furnish the bills regarding material or labour on any other proof to substantiate his claim. It was observed by the Assessing Officer that it is very interesting to note that the estimated quotation expenditure has been made exactly of the same amount that too not round off amount. It is well held in CIT Vs. Durga Prasad More (1971) 82 ITR 540(SC) that where a party is relying upon self serving documents, it is for the party to establish the truth. Further in the present case, the assessee has failed to discharge his burden of proof, therefore, the claim of the assessee regarding cost of improvement/renovation expenses at Rs. 10,31,906/- was rejected and added into the income of the assessee. Further with regard to issues of expenditure of Rs. 5,00,000/-, it was claimed by the assessee that the said amount has been incurred for renovation on the property in question ....
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....out that the AO if at all was not satisfied with the same he could have summoned the Architect u/s 131 for enquiring the correctness of the facts. The assessee also filed affidavit before the AO which should have been accepted in view of decision of Supreme Court of India in the case of Mehta Parikh & Co. reported in 30 ITR 181. It was also explained before the authorities below that the original bills were also stolen along-with other documents in the robbery. Thus the amount of Rs. 10,31,906/- on account of renovation of the said depilated property which was very old one and required lot of repairs should have been allowed. Further the Worthy CIT(A) was not justified in confirming the order of the AO therein charging interest u/s 234A, 234B and 234C. The interest charged is not justified and the same may be cancelled. Alternatively the interest charged is very high & excessive. 6. On the other hand, the Ld. DR relied upon the order passed by the authorities below. 7. We have gone through with the facts and circumstances of the case. Ground Nos.1,2,& 7 are general in nature, hence, do not require separate adjudication. Ground No.3 & 4 are connected with each other, there....
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.... of the I.T. Act that very petty renovation was made and white washing etc. was got done and about Rs. 90-95 thousand was spent on renovation and in response to the specific question with regard to furnishing the details of major construction made, if any, which cost beyond more than 2-3 lacs on which Sh. Kamal Kishore Gupta replied " No, I have not made any such huge expenditure on renovation which cost more than 1 Lac." Although, the Ld. AR relied upon the amount of Rs. 2,00,000/-Rs. 1,45,000/- & Rs. 1,50,000/- vide cheques No.407807, 396971, and 39690 on dated 8.12.2005, 18.08.2005 and 15.10.2005 respectively, however, the assessee has failed to discharge its onus to prove by bringing on record any supportive material in support of its case once there is ocular evidence which is direct cannot be side lined as Sh. Kamal Kishore Gupta specifically admitted before the A.O u/s 131 of the Act that he has not made any such huge expenditure of renovation which cost more than 1 Lac. Contention of the assessee that Sh. Kamal Kishore Gupta having been admitted to receive Rs. 5,00,000/- by cheque does not sound good in view of specific reply of the said person before A.O. Contention to A....
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.... was valued at Rs. 10,31,906/-. The said quotation dated 26-06-1999 is not an evidence of the actual expenditure incurred on renovation work of the hotel which was carried out much later by the appellant. Accordingly the said quotation of the architect cannot be accepted as an evidence of renovation expenditure incurred by the appellant and is dismissed. In absence of any evidence in the form of bills of material and labour or any other proof of having incurred renovation expenditure on the hotel building by the appellant before the AO or before the undersigned, the AO was justified in rejecting the claim of the appellant of renovation expenditure of Rs. 10,31,906/- and the addition of Rs. 10,31,906/- is confirmed." We have given our thoughtful consideration to the facts and circumstances of the case, submissions of the parties and the order passed by the authorities below. In the instant case for deciding the issue qua renovation expenses claimed at Rs. 10,31,906/- it was emphasized by the assessee that theft was taken place in the hotel premises i.e., Hotel Pegasus, Opp. Railway Station, building at 161/XIV-2, Khasra No.84 , G.T. Road, Amritsar. The Ld. AR relied upon the ....