Another issue before the department was about the excess claim of expenses against income from arbitration and dispute resolution. The former judge was asked to furnish details in support of his claim.
The department stated that the income from arbitration was ₹3,66,30,685, out of which the expenses claimed were ₹2,01,64,685. Essentially, the net income disclosed was ₹1,64,66,000.
The assessee claimed the expense was towards payment of salary of staff and associates, travelling, books, journals and connected expenses.
From the bank statements, and the claimed cash in hand, the department deduced that the maximum amount of ₹93,79,925 was available with the assessee for meeting expenses as opposed to the ₹2,01,64,685 as claimed by him. Additionally, the assessment order also recorded that the former judge had not maintained bills and vouchers for expenses.
Source: Barandbench
