AGNELO GUSTAVO EUGENIO RODRIGUES,MUMBAI vs. DY COMMISSIONER OF INCOME TAX CIRCLE 24 1 MUMBAI , MUMBAI

Facts

The assessee challenged the disallowance of purchases amounting to Rs. 1,35,66,404/- and ad hoc disallowances of certain expenses. The core issue was the genuineness of purchases from untraceable parties and the substantiation of various business expenses.

Held

The Tribunal ruled that the assessee failed to discharge the onus of proving the genuineness of the impugned purchases. For expenses, it was held that while wholly and exclusively business expenses are allowable, the assessee must substantiate them, and the quantum of disallowance for certain expenses was reduced.

Key Issues

Genuineness of purchases from untraceable parties and justification for ad hoc disallowances of expenses.