TaxTMI 
TaxTMI 
2026 (3) TMI 693
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....being addition made by the Assessing Officer (A.O. for short) on account of alleged non-genuine expenses. 3. Briefly the facts are, the assessee a resident corporate entity is stated to be engaged in the business of developing infrastructure projects such as roads and bridges. For the assessment year under dispute, the assessee filed its return of income on 26.11.2015, declaring loss of Rs. 1192,63,50,282/- under the normal provisions of the Act and book loss of Rs. 83,97,776/- u/s. 115JB of the Act. Subsequently, a search and seizure operation u/s. 132 of the Act was carried out on the assessee on 30.06.2017. Pursuant to the search action, proceedings u/s. 153A of the Act were initiated. In response to notice issued u/s. 153A of the Act....
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....bserved that the reasoning of the A.O. that the labour contractor has declared meagre income is of no relevance in the context of assessee's claim of expenditure. Further, he found that all primary evidences to prove the genuineness of expenditure such as the name of the party, his address, PAN, RA bills, purchase register, ledger account, bank statements, etc. have been furnished by the assessee. Thus, based on the aforesaid analysis of facts, ld. First appellate authority deleted the addition. 7. We have considered rival submissions and perused the materials on record. It is a common point before us that identical issue came up for consideration before the coordinate bench in assessee's case in A.Y. 2013-14. While deciding the issue in....
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....es of business of the assessee. It is settled law that burden of proof is on assessee and in order to claim that an expenditure falls under section 37(1), the burden of proving the necessary facts in that connection is on the assessee. Where an assessee claims a deduction, the onus is on him to bring all material facts on record to substantiate his claim. It is his duty to prove payment especially when the ITO doubts the genuineness thereof. In the instant case, the assessee has been able to discharge the onus in satisfactory manner duly supporting the claim of deduction with documentary evidences. All the payments have been made through banking channels and TDS has also been duly deducted by the assessee on the impugned payments. It is als....
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....e operation. Ld. first appellate authority having found merit in the submissions of the assessee, deleted the disallowances. 11. Before us, ld. Departmental Representative (ld. DR for short) relying upon the decision of Hon'ble Supreme Court in case of PCIT vs. Abhisar Buildwell (P.) Ltd. 149 taxmann.com 399 (SC) submitted that while deciding the appeals relating to M/s Kesarwani Zarda Bhandar Sahson Allahabad (Civil Appeal Nos. 7738-7739/2021, 7732- 7735/2021 and 7740/2021), the Hon'ble Supreme Court has held that even in case of unabated/completed assessment, the A.O. retains the jurisdiction to assess not only the undisclosed income found during the search operation, but the other income materials relating to which were availa....
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....) and the Gujarat High Court in the case of Saumya Construction (supra) and the decisions of the other High Courts taking the view that no addition can be made in respect of the completed assessments in absence of any incriminating material. 14. In view of the above and for the reasons stated above, it is concluded as under: (i) that in case of search under section 132 or requisition under section 132A, the AO assumes the jurisdiction for block assessment under section 153A; (ii) all pending assessments/reassessments shall stand abated; (iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess th....