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2013 (4) TMI 543 - AT - Income TaxInitiation of proceedings u/s. 153A - whether CIT(A) erred in not adjudicating the appellant's contention that initiation of proceedings u/s. 153A are bad-in-law even though no assessment or re-assessment proceedings in relation to this year were pending as on the date of the search u/s. 132 - Held that:- The issue stands covered against the assessee by the decision of the ITAT Mumbai Special Bench in the case of All Cargo Global Logistics Ltd. vs. DCIT [2012 (7) TMI 222 - ITAT MUMBAI(SB)]. Thus view taken by the CIT(A) confirmed and dismiss ground No. 1 of the assessee. 30% of addition made on account of alleged low household expenses - Held that:- There is nothing on record to prove that the assessee was enjoying a lavish life style. At the relevant point of time, around Rs. 30,000/- per month was sufficient to maintain a comfortable life and hence, without bringing any specific material on record, the AO as well as the CIT(A) erred in making an estimate towards household expenditure, which is not in accordance with law. In particular he has submitted that the learned CIT(A) assumed that for the subsequent year the expenditure declared was only Rs. 3,43,870/- and added to that Rs. 45,000/- (30% of the addition made by the AO) and hence the total household expenditure estimated by the CIT(A) works out to Rs. 3,88,870/- whereas the fact remains that the assessee had withdrawn a sum of Rs. 4,40,206/- towards household expenses. Thus the addition made by the AO as well as the CIT(A) was purely on estimate basis which has no legs to stand - in favour of assessee.
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