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2016 (1) TMI 1325 - AT - Income TaxAddition made on account of low drawings - explanation to nature and source of such expenditure - Held that:- In this case even though there has been search in the case of the assessee but no material whatsoever has been brought on record which may prove that the assessee has actually incurred the expenditure as has been estimated by the AO. The AO in this case has merely estimated the drawing of the assessee; therefore,it is of the view that the Revenue has not discharged his onus until and unless the Revenue has discharged his onus the assessee cannot be expected to explain the nature and source of such expenditure. On this basis itself, the addition in each of the assessment years cannot be sustained otherwise also noted that in this case the AO has simply taken the withdrawal made by Sri Mahaveer Singh, i.e., the assessee, ignoring the fact that the assessee was residing in Hotel Neelam along with his wife, Smt. Aruna Sankhla, sons Sri Hement Raj Sankhla, Sri Harsh Raj Sankhla and daughter, Sarita Shankla who were the partners thereof. On the basis of the chart if the drawings of all the family members who were putting together are taken into account the drawings of all the family members were much more than the drawings estimated by the AO. On this basis also, the addition is liable to be deleted. The total disallowance in each of the assessment years as has been depicted in the facts stated above whereas from ₹ 147087 to 18640 the estimate made by the AO should have been reduced by this expenditure or the AO should have considered this expenditure also, therefore, it is of the view that the estimate made by the AO is merely an estimate which is not based on the facts of the case. - Decided in favour of assessee.
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