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TMI Blog2024 (3) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that these expenses were first incurred by the employees at respective sites, which were subsequently reimbursed by the assessee to employees is also not acceptable HELD THAT:- Section 69C came into force with effect from 01.04.1976, the provision is merely clarificatory and embodies a rule of evidence which is even otherwise quite clear. When there is direct and clear evidence of expenditure not recorded in the books, the ITO would be entitled to treat the amount of expenditure or unexplained part of it as income from undisclosed sources, as the case of proven expenditure is in principle no different from that of a cash credit. See YADU HARI DALMIA [ 1980 (5) TMI 22 - DELHI HIGH COURT] . In the instant facts, we observe that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 91 days. Before us, the Counsel the assessee submitted that the appeal in filing was delayed due to order and countrywide lockdown due to corona pandemic and a prayer was made that in the interest of justice since the assessee has a good case on merits, the delay in filing of appeal may kindly be condoned. Looking into the instant facts, we are hereby condoning the delay in filing of appeal, in the interest of justice. 4. The brief facts of the care are that the assessee company, M/s. Bhavani Energy Solutions Pvt. Ltd. is engaged in the business of trading and Works Contract of Electric Items. It mainly does contract work for State Governments PSUs. It has two directors on its board namely Shri Girishbhai N. Solanki and Shri Chandreshbhai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the assessee to employees is also not acceptable since the assessee has not filed confirmation from the employees to whom reimbursement was made. Further, the assessee has also failed to show any entries of reimbursement in his books of accounts. Accordingly, Ld. CIT(Appeals) confirmed the addition in the hands of the assessee, with the following observations: Brief facts of the case are that during the course of survey some diaries and loose paper file were impounded which contained entries of expenses which were not found accounted for in books of account. The Assessing Officer after analyzing the various entries impounded documents issued show cause notice contained on page-4 assessment order wherein he listed the unmatched entrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee is an appeal before us against the said additions confirmed by Ld. CIT(Appeals). Before us, the counsel for the assessee submitted that the assessee has maintained regular books of accounts and relevant documents for the year under consideration. The books of the accounts of the assessee have been duly audited under Section 44AB of the Act, and no defects have been found in the books of accounts of the assessee. With regards to the additions made by the AO, the assessee submitted that the expenses have been incurred by the employees of the company as site expenses viz. cement, expenses, labour, expenses, chemical expenses, pipe, fitting expenses, etc. In the books of accounts, the same have been debited in the profit and loss a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were later reimbursed by the assessee company. Further, DR also submitted that the assessee he has also failed to show entries of reimbursement in his cashbook as well. Accordingly, it was submitted that the CIT has correctly confirmed the additions, looking into the instant facts. 9. We have heard the rival contentions and perused the material on record. In the case of Yadu hari Dalmia4 Taxman 525 (Delhi) , the High Court held that even though Section 69C came into force with effect from 01.04.1976, the provision is merely clarificatory and embodies a rule of evidence which is even otherwise quite clear. When there is direct and clear evidence of expenditure not recorded in the books, the ITO would be entitled to treat the amount of expe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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