Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 352 - AT - Income TaxAddition on account of low household expenses - HELD THAT:- AO has neither pointed out any and cogent and convincing reason nor pointed out any evidence on record to justify his action. In the remand report AO has justified the addition in question only on the ground that his predecessor has made the said addition. As pointed out in the case of Sh. Dinesh Kumar Kaushal [2016 (3) TMI 234 - ITAT DELHI] has deleted the addition made on account of low household expenses in the similar set of facts by following the ratio laid down in the case of C. Velukuty [1965 (12) TMI 32 - SUPREME COURT] CIT(A) has wrongly affirmed the action of AO in making addition purely on ad hoc basis without assigning any cogent reason and referring any evidence. Hence, respectfully following the decision of the Delhi Bench of the Tribunal discussed above, we set aside the findings of the Ld. CIT(A) and allow this ground of appeal of the assessee and direct the AO to delete the addition. Addition of cash deposits in the bank account - Assessee has contended before the Ld. CIT(A) that during the year relevant to the assessment year under consideration, the assessee was a partner in M/s S.D. Marketing Co. having 60% share, besides proprietor of two concerns - HELD THAT:- Assessee withdrew money from the accounts of the said concerns from time to time in connection with the business of the said concerns - authorities below have not examined this aspect in order to verify the contention of the assessee - authorities below have not controverted the plea of the assessee that the assessee had personal cash balance of ₹ 1,06,758/- as on 01- 04-2012. Assessee has discharged the onus of explaining the credit entries in question, however, the authorities below have rejected the explanation without assigning any cogent reason or rebutting the contention of the assessee. The facts of the case and the evidence on record suggest that the CIT(A) has sustained the addition without considering the explanation given by the assessee - action of the Ld. CIT(A) is not in accordance with the settled principles of law - we direct the AO to delete the addition. - Decided in favour of assessee.
|