9911796707
TMI Blog2022 (4) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. In our opinion unless these expenditure is wholly and exclusively incurred for the purpose of carrying on the business of the assessee, the expenditure cannot be allowed. Being so the lower authorities are justified in disallowing the expenditure. These grounds of appeal of the assessee is dismissed. With regard to the other arguments of the assessee that there no material to substantiate the claim of the assessee s alleged sundry payments, the Managing Director of the assessee company Shri Naveen Shetty and also Shri Narayan Shetty confirmed the usage of BTW application by RSINL and its sister concern since 10 years. Regarding the books of accounts maintained and source of transactions pertaining to the company as per the BTW appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued to RNSI vide circular dated 21.02.2012 directing the employees for prompt accounting of the sundry payments to various department on daily basis. Further the Vice President of RNSI, Shri Sunil Sahasrabudhey, also admitted these payments, though he retracted later- we are of the opinion that there is no error in the order of the lower authorities in disallowing the payment - Decided against assessee. - ITA No. 433/Bang/2020 - - - Dated:- 4-4-2022 - Shri Chandra Poojari, AM And Smt. Beena Pillai, JM Appellant by : Shri Ashok A Kulkarni, Advocate Respondent by : Dr. Manjunath Karkihalli, CIT-DR ORDER Per: Chandra Poojari, AM This is an appeal filed by the assessee against the order of the learned CIT(A)-11, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks of account. The AO states that appellant's books of accounts contained in these 54 data files revealed the following 1. The recording in these books of account is day wise, systematic and comprehensive. 2. It contains cash book, bank and all ledgers including ledger under the head sundry 3. The details of sundry reflected in the ledger are complete with voucher number, date, narration, amount and transaction type. 4. The transaction type mentioned against sundry payments is CP suggesting that such payments are made entirely in cash. 5. Sundry payments are also getting reflected in the cash book. 6. The voucher number assigned to each sundry expense item suggests both chronological sequence and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed the same. Before us the AR is unable to show how these payments are related to the business of the assessee. In our opinion unless these expenditure is wholly and exclusively incurred for the purpose of carrying on the business of the assessee, the expenditure cannot be allowed. Being so the lower authorities are justified in disallowing the expenditure. These grounds of appeal of the assessee is dismissed. 8. With regard to the other arguments of the assessee that there no material to substantiate the claim of the assessee s alleged sundry payments, the Managing Director of the assessee company Shri Naveen Shetty and also Shri Narayan Shetty confirmed the usage of BTW application by RSINL and its sister concern since 10 years. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash book and the voucher number assigned to each sundry expense item suggest both chronological sequences and consistency of records relating to sundry payments and reflected in the books of account. Majority of such folders were also found to have been deleted from the hard disk. The sundry payments were forming part of books of accounts maintained in the names of RNS, NHL, MPC, NMCC or other entries in the cash book and in ledgers except those relating to sundry payments have been found to be reflected in the regular books of accounts prepared by assessee for statutory purposes. The digital evidences discussed above, has also been found from systems in Hubli office of RNSI as well as from systems in the site office of RNSI at Tarikere. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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