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| The Tax Publishers2019 TaxPub(DT) 8316 (Del-Trib) INCOME TAX ACT, 1961
Section 37(1)
CIT(A) rightly sustained disallowance as regards reimbursements made to employees on ground of non-production of details of evidences, because to support its ground, onus was on to assessee to produce those relevant documents, which assessee had failed to do so.
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Business expenditure - Allowability - Reimbursement made to employees disallowed -
Assessee challenged order of CIT(A) in disallowing sum for non-submission of documents and non-compliance of TDS provision on reimbursements made to employees on account of Petrol, Drivers' Salary and Mobile Expenses. It contended that CIT(A) failed to consider that no tax was deductible on aforesaid reimbursements made to employees. Held: CIT(A) sustained disallowance mainly on ground of non-production of details of evidences, therefore, to support its ground of appeal, onus was on to assessee to produce those relevant documents before Tribunal. Assessee did not produce any such vouchers of incurring expenses by those employees and claimed as reimbursement. In absence of any documentary evidences of incurring of expenditure by concerned employees, issue, as to whether amounts were reimbursement to employees, could not be examined. Moreover, being identical amount to all employees, payments appeared in nature of allowance rather than reimbursement of actual expenses incurred on behalf of assessee. Thus, there was no error in order of CIT(A).
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2011-12
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