2019 (12) TMI 1476

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....n account of Labour Charges, Repair and maintenance expenses, printing and stationery, office exp. vehicle fuel and maintenance exp. and vehicle repairing exp." 2. Briefly the facts of the case are that the assessee is engaged in the Civil Construction business and filed its return of income declaring total income of Rs. 1,02,82,840/- which was selected for scrutiny and the assessment was completed u/s 143(3) wherein an addition of Rs. 2,00,000/- was made by the Assessing Officer on account of disallowance of certain expenses claimed by the assessee in its profit and loss account. On the appeal, the same has been confirmed by the ld. CIT(A) and against the said findings, the assessee is in appeal before us. 3. During the course of hearing....

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....e material available on record. The Assessing Officer has recorded a finding that on examination of bills and vouchers of expenses, it was noticed that the assessee did not maintain proper and complete vouchers of these expenses and some of the payments were made in cash. Further, it was noticed by the Assessing officer that some of the vouchers of these expenses are self made and without supporting bills and not verifiable fully, therefore, he has made a lumpsum disallowance of Rs. 2,00,000/-. In our view, in the absence of any specific findings that the claim of the expenditure are either bogus or not been incurred wholly and exclusively for the purposes of business, there is no basis for making any adhoc disallowance of expenses and the ....

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.... Act. In order to get the deduction under section 37 of the Act, primary onus lies on the assessee to prove that such expenditure are incurred wholly and exclusively for the purpose of business or profession. 5.5 In the instant case, the assessee has failed to provide supporting documents to prove that such expenditures are incurred wholly and exclusively for the purpose of business or profession. Therefore, in my considered view a disallowance of Rs. 1,50,000/- out of the expenses claimed on the above mentioned expenditure is reasonable to cover the discrepancies mentioned by the A.O. in the assessment order. Accordingly, the ground of appeal on this issue is dismissed." If certain claim of expenditure is not found to be incurred wholl....