2025 (8) TMI 1841

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....or AY 2017-18 on 29.11.2017 declared loss from the business at Rs. 9,70,47,842/-. The case was selected for complete scrutiny under CASS. Subsequently, notices under section 143(2) and 142(1) of the Income-tax Act, 1961 (for short 'the Act') were issued and served on the assessee. In response, assessee furnished the relevant details as called for. 3. Assessee is engaged in the business of wholesale trading of electronics. After considering the informations provided by the assessee, not convinced with various details submitted by the assessee, AO proceeded to make the following additions :- Addition : disallowance made under section 37(1) of the Act (as per para 3) 18,17,667 Addition : disallowance made under section 37(1) of the....

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....urred by it over the years. vi. All the expenses are related to running its business. 5.2. Hon'ble Delhi High Court in the case of PRINCIPAL COMMISSIONER OF INCOME TAX-7 versus R.G. BUILDWELL ENGINEERS LTD. has held that, "1. The Revenue is aggrieved by the findings of the Commissioner of Income- Tax (Appeals) and Income Tax Appellate Tribunal (ITAT), whereby disallowances and consequent additions made on two counts, i.e. expenses claimed towards the bricks, machinery repair, cartage etc. (Rs.1.1. crores) and labour expenses (Rs.2.3crores) were set aside. 2. The Assessing Officer (A.O.) made the additions in respect of the return of the Assessee's income of the Assessment Year 2010- 2011. ....

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....ed on facts and in law by allowing the appeal of the assessee by deleting the disallowance of expenses of Rs.5,85,84,551/- made in the hands of the assessee. 2. The Ld. CIT(A) has erred on facts and in law by ignoring the fact that the AO has raised the question related to entries/transactions in books of accounts and assessee failed to produce the supporting documents to explain the same. 3. The Ld. CIT(A) has erred on facts and in law by not appreciating the fact that the onus to prove genuineness of the expenses claimed lies with the assessee. 4. The Ld. CIT(A) has erred on facts and in law by not appreciating the fact that as the chart for previous 5 years provided by the assessee showing the expenses incurred....