Late Kari Thimmegowda Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that post search operation, revenue cannot shift burden on assessee to prove genuineness of expenses as nothing contrary found in the search operation. Accordingly, additions thereof deleted.
Facts- A search and seizure action was carried out on 19th July, 2017 in the case of the assessee and its business concerns. At the time of search, the assessee has made a surrender of Rs. 13 crores for all the years covered under search action. However, at the time of filing of the returns, the assessee has not obliged his surrender made at the time of search and has filed the returns of income by incorporating other additional income.
During the course of assessment proceedings, AO observed that the assessee has incurred certain expenses pertaining to its transport business under the head “route expenses”. As per AO, during the course of search, the statement of the assessee was recorded by the department, in which statement it has alleged to have been conceded by the assessee that certain expenses were not supported by proper vouchers. Relying upon the statement of the assessee, the A.O. disallowed these “route expenses”.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
