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2009 (4) TMI 938 - AT - Income TaxEstimation of household expenses - Addition on low household withdrawals - assessment u/s. 153A r/w s. 143(3) - assessee explained that the household expenses are met from self-contributions, contributions from his brother, i.e., the other appellant and another family member - expenses declared by the assessee have been held to be inadequate by the AO. HELD THAT:- We find that before the claim of household expenses made by the assessee is to be rejected, the AO must bring out cogent material and evidence. In this case, reasons advanced by the AO are quite general in nature. In fact, the first reason relating to the household articles pointed out, does not turn much on the subject because such articles are a normal occurrence in urban household. There is no allegation by the AO, much less a finding, that the lifestyle or the expenditure on the gadgets was ostentatiously lavish. Secondly, even estimation of household expenses admitted by the lady member of the family, can at best, be a yardstick to consider the acceptability of the expenses incurred by the assessee in the AY in question. Considering the amount admitted by the lady member of the family in the year 2003 and also household goods referred to by the AO, in the years under consideration, the amounts returned by the assessee on household expenses cannot be rejected as unbelievable or unreasonable. Considering in the overall light and on the basis of absence of any adverse material on record, we find no justification with the AO to estimate the household expenses over and above those returned by the assessee in the respective assessment years. We, therefore, set aside the order of the CIT(A), and direct the AO to delete the additions. Appeals of the assessee are allowed.
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