SHRI VISHWAS VYANKATRAO INGALE,,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-5(3),, BARODA

आदेश/O R D E R

PER AMARJIT SINGH - AM: The appeal filed by the assessee for A.Y. 2009-10, arise from order of the CIT(A)-3, Vadodara dated 02.05.2016, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

ITA NO. 1913/AHD/2016 A.Y. 2009-10

Ground of Appeal No. 1& 2:-

During assessment on verification of the record the Assessing Officer has noticed that assessee furnished copy of balance sheet, profit and loss account along with tax order report. On verification of the various schedule as well as profit and loss account the AO has noticed that assessee has debited various expenses to the profit and loss account. In order to verify the genuineness of the expenses claimed by the assessee the AO has asked the assessee to furnish supporting evidences i.e. bill/voucher etc. In spite of giving a number of opportunities the assessee has failed to furnish the supporting bill and voucher as required by the AO. Consequently, the AO has held that in the absence of supporting bill and voucher the genuineness of the various expenditure could not be verified. Therefore, the AO has disallowed 10% of the expenses to the amount of Rs. 5,62,200/-.

During the course of assessment AO has given a number of opportunities to the assessee to produce bill and voucher and books of account to verify the genuineness of these expenses. However, the assessee has failed to make 2

ITA NO. 1913/AHD/2016 A.Y. 2009-10

necessary compliance. Thereafter during the course of appellate proceeding before the Ld.CIT(A) the case of the assessee was remanded to the AO to verify the claim of the assessee on the basis of detail/information and documentary evidences of expenses to be produced by the assessee. However, the assessee has again failed to make necessary compliance and not produce bill and voucher in support of the expenditure debited in the profit and loss account, therefore, the AO could not verify the genuineness of the expenses debited in the profit and loss account. With the assistance of the Ld. Representative we have gone through the material on record and noticed that AO has issued various notices u/s. 142(1) of the Act and ask the assessee to furnish the detail/document as supporting evidences for the purpose of verification and the Ld. CIT(A) has also extended a number of opportunities but the assessee has failed to produce primary information i.e. bills/vouchers in support of claim of expenditure debited to the profit and loss account. The submission of the assessee as mentioned in Para 11 of the Ld. CIT(A) that his books of account were subject to audit and nowhere during the course of audit it was found that any expenses was not supported by proper documentary evidences. This contention of the assessee is not acceptable andwe observe that before completion of assessment u/s. 143(3) the AO can make enquiry and ask the assessee to produce, or cause to be produced such account or document as the AO may require. Considering the above facts and circumstances we do not find any error in the decision of the CIT(A) even during the course of appellate proceeding before us the assessee has not demonstrated that he has produced the bill and voucher for verification before the AO or at the time of appellate proceeding. Therefore, this ground of assessee is dismissed.

Ground of Appeal No. 3:-

ITA NO. 1913/AHD/2016 A.Y. 2009-10

with bank statement etc. On verification of these documents furnish by the assessee the AO noticed that the assessee has taken a loan of Rs. 26,00,000/- from Bank of Baroda toward purchase of the said property. However, the AO has noticed that assessee has made further payment of Rs. 7,00,000/- on various dates but the assessee has not explained the source of payment of this remaining amount towards purchase of property. Therefore, the AO has made addition of Rs. 7,00,000/- as unexplained investment and added to the total income of the assessee.

Subsequently, during the course of appellate proceeding before Ld. CIT(A) the assessee has furnished further detail documentstherefore further relief to the amount of Rs. 2,80,000/- given as advance for purchase of property was provided. However, the assessee has failed to substantiate the source of payment of Rs. 4,20,000/- made on various date for the purchase of impugned property. With the assistance of Ld. Representative we have gone through the paper book submitted by the Ld. Counsel during the course of appellate proceeding before us and it is noticed that as per Page No. 46 of the Paper Book the detail of investment made in the purchase of shop to the amount of Rs. 33,00,000/- was given in the form of ledger account. However, it is noticed that assessee has not explained source of payment to the amount of Rs. 4,20,000/- mainly made in cash on various dates. We do not find any relevant document or supporting evidences in the Paper Book 4

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which can demonstrate the source of investment of Rs. 4,20,000/- in the impugned property.In the light of above facts and circumstances we do not find any infirmity in the decision of Ld. CIT(A) in sustaining the addition to the extent of Rs. 4,20,000/-. Therefore, we do not consider any substance in the appeal of the assessee on this issue. Accordingly this ground of appeal of the assessee is also dismissed.

This Order pronounced in Open Court on 14/06/2019

Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 14/06/2019 TANMAY TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4.आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध,आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file.

By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण,अहमदाबाद ।

1.Date of dictation on 12.06.2019 2.Date on which the typed draft is placed before the Dictating Member 13.06.2019 3.Date on which the approved draft comes to the Sr.P.S./P.S. 13.06.2019 4.Date on which the fair order is placed before the Dictating Member for Pronouncement 14.06.2019 5.Date on which the fair order comes back to the Sr.P.S./P.S 14.06.2019 6.Date on which the file goes to the Bench Clerk 14.06.2019 7.Date on which the file goes to the Head Clerk…………. 8.The date on which the file goes to the Asstt. Registrar for signature on the order…………………… 9.Date of Despatch of the Order………