Dismissing the appeal of the Revenue the Court held that the burden of proving that the expenditure was incurred \u201cwholly and exclusively\u201d for the purpose of business, is on the assessee. This burden needs to be discharged by the preponderance of probability. What should be the quantum and quality of evidentiary material to discharge such a burden is a matter lying in the discretion of the Assessing Officer and such discretion has to be exercised in accordance with the rules of reason and justice. Section\u00a0131\u00a0vests powers of a civil court in the Assessing Officer, inter alia, for compelling the production of books of account and other documents and for this purpose the section in many words equates him with a civil court. Exercising the powers of a civil court under the provisions of Order XIII of the Schedule to the\u00a0Code of Civil Procedure, 1908, the Assessing Officer can send for the books of account and documents that are seized (by a Magistrate) in other proceedings. Courts have held that this power is coupled with a public duty to call for the assessee\u2019s books of account which are in the custody of a public authority. Relied on \u00a0Sai Ramakrishna Karuturi v. UOI (2018) 402 ITR 7 (Karn)(HC), UOI \u00a0v. State \u00a0(1961) 42 ITR 753 (Cal)(HC) and E. M. C. (Works) Pvt. Ltd. v. ITO (1963) 49 ITR 650 (All)(HC).No substantial question of law. (AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Books of account and documents in custody of Central Bureau of Investigation-Assessing Officer has power and duty to requisition documents from another Public Authority-Disallowance of expenditure is not valid-Findings of Tribunal cannot be interfered with unless perverse or illegal. [S. 131, 260A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-30941","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-833","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=30941"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30941\/revisions"}],"predecessor-version":[{"id":32332,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30941\/revisions\/32332"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=30941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=30941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}