Expense allowed based on copy of account, name and address as bill/ voucher lost due to flood

ACIT Vs Sheel Engineers (ITAT Surat)

ITAT Surat held that bill and vouchers of the expenditure claimed by the assessee was loss on account of floods. The explanation of expenses by way of copy of accounts, names and addresses, details TDS deducted and payments by crossed account payee cheques acceptable.

Facts- During the assessment proceedings, the assessee was asked to furnish the bills and vouchers of expenses debited to Profit and Loss account. However, no such bills and voucher were produced by the assessee. Further during the course of revision proceedings u/s 263 of the Act, the assessee has not submitted the bills of labour charges, carting charges, repair and maintenance, hire charges, for verification.

Therefore, during the assessment proceedings, the assessee was asked to explain as to why the above, expenses for which no bills were provided during 263 proceedings and also not provided before assessment proceedings, should not be disallowed.

AO held that assessee did not prove the claim of above expenses with primary documentary evidences, such as bills and vouchers, thus, the expenses claimed of Rs.3,48,20,237/- were disallowed.

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