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TMI Blog2023 (6) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenses for the rest of the year have been allowed by the AO. We re unable to appreciate the view taken by the Assessing Officer that no expenses / the expenses incurred from first day of financial year to the date of survey are bogus when the expenses of similar nature that are booked post the date of survey are genuine and allowable according. Assessee is doing regular business throughout the year and there cannot a situation where no expenses are incurred from the first of the financial year till the date of search - Thus expenses booked by the assessee upto the date of survey cannot be treated as bogus only for the reason that the same are accounted in the books of account subsequent to the date of search - delete the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 133A that was carried out in the business premises of the assessee on 27/09/2018. During the course of survey proceedings, on examination of cash book maintained by the assessee, discrepancies were noticed in the cash in hand as per books as on 27/09/2018 and the physical cash available with the assessee. The cash balance as per cash book as on the date of survey was as under:- (1) Tirupati Enterprises Rs. 47,36,001/- (2) Tradein Logistics Rs. 31,61,839/- The physical cash found during the survey proceedings was Rs.2,450/-. A notice under section 143(2) was served on the assessee and the details were called upon by the Assessing Officer. During the course of assessment proceedings on examination and reconciliation of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e financial year upto the date of survey and that post the survey, the assessee had updated the cash book. The assessee also submitted that these are genuine expenses incurred by the assessee during the course of business in relation to mainly transportation expenses, petrol charges and other office related expenses. The assessee also produced vouchers with regard to these expenses. The Assessing Officer did not accept the submissions of the assessee and made an addition of Rs.19,35,558/- towards the expenses booked in the cash book upto the date of survey treating the expenses as not genuine and that the evidences produced in the form of vouchers could not be accepted. The Assessing Officer also made an addition under section 41(1) in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The AO has pointed out very categorically that only Xerox copies were furnished and no the original vouchers were produced. While most of these vouchers had been prepared against 'diesel charges' and all were for an* amount below Rs.20,000/-, the bills issued by petrol pumps towards diesel charges were not attached. Also the vouchers purported to be towards 'loading and unloading charges' were also not supported by the details of the labour employed for the specific job. Thus, the AO has rightly not accepted the expenses claimed through these vouchers as genuine expenses. In view of the above, the disallowance made by the AO of Rs. 19,35,558/- as bogus expenditure is upheld. Accordingly, this ground of appeal is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of hearing, the bench called upon the Ld.AR to produce the cash expenses incurred by the assessee for financial years relevant to AYs 2016-17, 2017-18 and 2019-20 in order to analyse the trend of expenses which have been incurred in the similar way as in the year under consideration. The Ld.AR submitted details of cash expenses, the P L Account and the cash book for the above assessment years which have been taken on record. On perusal of the said details, we notice that the expenses claimed by the assessee towards transportation and other office expenses are in line with the earlier years and subsequent years to the year under consideration. We further notice that assessee has made a statement before the lower authority tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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