ANIL GOVINDRAO HOTWAR,,JALNA vs. INCOME-TAX OFFICER, WARD - 1,, JALNA

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 1, Aurangabad [‘the CIT(A)’] dated 01.01.2018 for the assessment year 2012-13.

Briefly, the facts of the case are that the appellant is an individual deriving income from hire charges of JCB Machines. The return of income for the assessment year 2012-13 was filed on 30.09.2012 declaring total income of Rs.2,65,050/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1, Jalna (‘the Assessing Officer’) vide order dated 09.03.2015 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at total income of Rs.7,90,150/- after making disallowance of Rs.5,25,100/- on account of salary and machinery maintenance expenses. The Assessing Officer disallowed the same by holding that the rental income was shown not under the head “business” but shown under the head “other sources”. 3. Being aggrieved by the above addition, an appeal was preferred before the ld. CIT(A), who vide impugned order confirmed the addition on the ground that the appellant had not furnished the details of salaries and machinery maintenance expenses, not produced vouchers in respect of such expenditure nor the mode of payments and also failed to prove that such expenditure was incurred wholly and exclusively for the purpose of earning income offered to tax under the head “income from other sources”. 4. Being aggrieved by the above decision of the ld. CIT(A), the appellant is in appeal before us. 5. The ld. AR submits that there is no requirement under law to maintain the books of accounts when the turnover of the assessee does not exceed the prescribed limit. Even in the absence of books of accounts, no income can be earned under the head “other