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2023 (6) TMI 563 - ITAT DELHIAddition on account of low household withdrawals - HELD THAT:- Tax Authorities have failed to take into consideration assessee’s claim that the assessee was living in house owned by his father who pays electricity bills and other maintenance. Assessee’s wife is also an income-tax payee who has withdrawn a sum out of her capital account. Bench is of the considered opinion that house-hold expenditure on the basis of low withdrawals for an individual have to be considered in the light of the family as a unit. No justification to take the withdrawals of the assessee alone to conclude that the same are on the lower side and presuming expenditure as to what he would be expending on the family as a unit. Addition thus made AO deserved to be deleted in the whole which ld. CIT(A) has failed to do. Decided in favour of the assessee. Addition u/s 40A(3) - genuineness of the payee/transactions wasnot fully established - HELD THAT:- When assessee is not buying the plot/building for the purpose of private needs, but as part of the business activity of raising construction on the plot and selling them, the payment of Rs. 2,80,000/- cash is questionable. There is no force in the contention that as this amount is not shown in the P&L A/c and forms part of the stock, the same cannot be disallowed u/s 40A(3) - as this amount forms part of the cost of construction the same is required to be shown in the P&L A/c and justified to be made for business exigency. Thus, the Bench is not inclined to interfere in the finding of tax authorities below. Decided against the assessee. Unexplained cash deposited in bank - reasonable show cause notices assessee failed to bring evidence - HELD THAT:- CIT(A) but failed to consider the evidence and plea taken before Ld. CIT(A), that the deposits were from the prior withdrawals. Therefore, the issue deserve to be restored to the files of Ld. CIT(A) to verify the fact of deposits being from the prior withdrawals and benefit the assessee.
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