2019 (1) TMI 1805

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....dated 26.07.2017 for the Assessment Year (AY) 2013-14 & 2014-15. 2. Since, the identical facts and issue is involved in these appeals, we proceed to discuss the same vide this common order for the sake of convenient and clarity the facts relevant for the AY 2013-14 in ITA No.2412 /Chny/2017 for the AY 2013-14 are stated herein. 3. The brief facts of the case are as under:  The appellant is a company incorporated under the provisions of Companies Act, 1956 engaged in the business of boarding and lodging. The return of income for the AY 2013-14 was filed on 27.09.2013 disclosing total income of Rs. 76,16,990/-. Against the said return of income, the assessment was completed by Asst. Commissioner of Income Tax, Corporate Circle-4(2), ....

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....2 & 2413/Chny/2017 for the AY 2013-14 & 201415. Being aggrieved, that part of the ld. CIT(A), which is against the Revenue, the Revenue is in ITA No.2508 & 2509/Chny/2014 for the AY 2013-14 & 2014-15. 5. We had the rival submissions and perused the material on record. The nature of the claim was explained by the assessee-company before the AO as under: "5. When asked to explain the nature of service done by the staff for getting these service charges, the assessee-company submitted a note as under: "Service charges are paid in lieu of Tips, Previously, the Room Boys who had opportunities to carry food items to the Rooms of the Customers, received tips from them and pocketed them. In the course of time, the amount so cornered by a few, ....

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.... of the service charges but the total service charges paid to the employees far exceeds the amount collected. This fact undoubtedly raises doubts as to the genuineness of the claim made. Perhaps, this would have trigged the Assessing Officer to enquire into the genuineness of the claim. As a part of inquiry into the claim, the Assessing Officer had examined certain employees, who had denied having received any such service charges. However, this would not lead to a conclusion that the claim is untenable in view of the fact that the employees, who were examined by the AO may not be working during that relevant time. However, the onus of proving the claim always lies on the assessee. But, the present case, the assessee-company failed to lead ....

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.... Punjab) reported in 1937, 5 Income-tax Reports, 464 at page 475 : "I am not, however, prepared to hold," says Mr. Justice Din Mohammad, "that any burden is imposed on the Income-tax authorities to prove by 'positive evidence' that the accounts are unreliable or that the figure at which they assess is the correct figure. In the first place, the question of unreliability of accounts is a question of fact and primarily falls for the determination of the Income-tax authorities alone................Secondly, the Incometax Officer cannot be fixed with the knowledge of the state of the assessee's accounts and cannot consequently be expected to lead evidence to prove the assessee's transactions for the accounting year. Under Sectio....