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TMI Blog2016 (7) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order dated 18-11-2009 passed by the learned Assessing Officer (hereinafter called "the AO") u/s 143(3) of the Income Tax Act,1961 (Hereinafter called "the Act"). 2. The ground of appeal raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") reads as under:- "1. Disallowance of Expenses of Rs. 7,83,340/- 1.1 The Commissioner of Income tax(Appeals ) 3, Mumbai,[ (CIT(A)] , erred in confirming the Disallowance of cash expenses of Rs. 7,83,340/-(50% of Rs. 15,74,680/-) on the ground that, vouchers substantiating the expenditure were not produced before the AO. The appellant submits that, as required by the AO during the course of assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, the assessee was asked to submit the details of following cash expenses : a) Costumes Rs. 5,32,557/- b) Food Rs. 4,10,729/- c) Shooting expenses(Refreshment) Rs. 9,63,277/- d) Travelling Rs. 2,45,352/- e) Vehicle Hire Rs. 1,25,880/- Total Rs.22,77,795/- However, as per AO , no bills or vouchers substantiating the cash expenses were submitted by the assessee and the AO disallowed 50% of cash expenses for want of verifiability and added the same to the income of the assessee , vide assessment orders dated 18-11-2009 passed by the AO u/s 143(3) of the Act. Similarly, the AO asked the assessee to submit the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which element of personal usage cannot be ruled out , therefore some disallowance is called for as held by learned CIT(A). The learned CIT(A) accepted the claim of the assessee that shooting expenses of Rs. 9,63,277/- has been considered to be incurred in cash whereas cash expenditure is only Rs. 2,60,162/- only and balance Rs. 7,03,115/- for which no disallowance is called for. Thus, the learned CIT(A) worked out cash expenses of Rs. 15,74,680/- after excluding Rs. 7,03,115/- from Rs. 22,77,795/- cash expenses considered by the AO and restricted disallowance to 50% of Rs. 15,74,680/- i.e. to Rs. 7,83,340/- vide appellate orders of the learned CIT(A) dated 22-11-2011. Similarly , for the second addition with respect to disallowance of 25% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verifications of the same remains questionable and hence the learned CIT(A) restricted the disallowance to 15% of the claim vide appellate orders dated 22/11/2011 passed by learned CIT(A). 8. Aggrieved by the appellate orders dated 22/11/2011 passed by the learned CIT(A) , the assessee filed second appeal before the Tribunal. 9. None appeared before the Tribunal on behalf of the assessee when the appeal was called for hearing. On the other hand , the learned DR submitted that disallowances have been made of the expenses claimed by the assessee as the assessee has not furnished complete details and invoices for expenses to substantiate that the expenses were incurred wholly and exclusively for the purposes of business of the assessee with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave furnished the complete details of the expenses before the authorities below and to prove his claim by substantiating that the mandate of provisions of Section 37(1) of the Act are fully complied with as the primary onus is on the assessee to prove and substantiate his claim of deduction of expenses from the income before the authorities below as these expenses are claimed by the assessee as deduction from the income in the return of income filed with the Revenue , and on the other hand it was incumbent on the part of the authorities below to have scrutinized the claim of the assessee to identify and disallow the specific expenses which are found to have not been proved and substantiated by the assessee to have been incurred wholly and e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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