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TMI Blog2021 (2) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... cause of which the verification regarding genuineness of the same could not be carried out; and, secondly that the assessee had applied lower rate for deducting tax at source as reported in the Audit Report HELD THAT:- It is settled law that onus is on the assessee to prove the genuineness of expenses claimed by the assessee as deduction. It is also settled law that the AO has statutory authority to make inquiries before completing assessment; and to gather all relevant material. Such statutory authority of the AO has also been specifically mentioned in relevant provisions of law including in sections 142, 142A 143(3), 131, 133, 133A of IT Act, for example. It is an assessee s duty to comply with lawful requirements prescribed by Revenue au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see are as under: 1. Disallowance of Professional Expenses paid on estimated basis @ 5% of the total payments amounting to ₹ 60,53,727/- and confirmation of the same by the CIT(A) is contrary to facts and law and therefore, the disallowance is liable to be deleted. 2. Disallowance of expenses paid to contractors @ 1% of the total payments amounting to ₹ 55,03,286/- and confirmation of the same by the CIT(A) is contrary to facts and law and therefore, the disallowance is liable to be deleted. 3. The appellant craves leave to add or amend any of the grounds of appeal. (B) The first ground of appeal pertains to disallowance amounting to ₹ 60,53,727/- out of professional expenses totaling ₹ 12,10,74,547/-. This disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases; and further, that the assessee had concerned that the addresses of all the persons to whom contractual payments were made could not be submitted. (D) The non-compliances on the part of the assessee during proceedings before the AO and before Ld. CIT(A); as mentioned in foregoing paragraphs (B) and (C) of this order, which resulted in adverse view against the assessee by the authorities below are not in dispute. At the time of hearing before us, learned Authorised Representative ( Ld. AR , for short) of the assessee admitted that the non-compliances noted by the AO and by Ld. CIT(A) in their respective orders; were factually correct; in respect of both the aforesaid disallowances of ₹ 60,53,727/- and ₹ 55,03,286/-. He expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections 142, 142A 143(3), 131, 133, 133A of IT Act, for example. It is an assessee s duty to comply with lawful requirements prescribed by Revenue authorities. When an assessee does not comply with lawful requirements prescribed by Revenue authorities, the assessee cannot claim a lenient view as a matter of right, and the assessee must face the consequences in accordance with law; more so, when the onus is on the assessee to prove the genuineness of a claim. For this view, we take support from order of Co-ordinate Bench of ITAT, Delhi in the case of Aradhana Foods Juices Pvt. Ltd. v/s. ITO (2017) 50 CCH 0080 Del Trib; in which similar view was taken in respect of disallowance of unverified purchases which was affirmed by Hon ble Delhi High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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