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2015 (7) TMI 610 - ITAT DELHIAddition on account of inadequate house hold expenses - validity of assessment u/s 153A - Held that:- It is true that no addition can be made in respect of unabated assessments, if no incriminating material is found during the course of search. The recent judgment of the Hon’ble Bombay High Court in the case of Continental Warehousing Corporation (2015 (5) TMI 656 - BOMBAY HIGH COURT ) supports that the argument of the assessee. In this case during the course of search, certain valuables were found. A list of the same is found in the panchnama. There valuable assets include billiards table, piano, expensive paintings, chandlier, centrally air conditioner system etc. Thus in our view the ld. CIT(A) is correct in coming to a conclusion that, certain material was found during the course of search, based on which assessment can be done, even in the case of the abated assessments. Owning luxurious cars etc. indicate that the monthly expenditure on maintenance would be higher than the personal drawing disclosed. In our view, the valuable found during the course of search, indicate the standard of living the assessee and his other members and these are material based on which an addition can be made for low drawing. Thus this legal argument of the assessee is dismissed on the issue of addition made u/s 153A r.w.s. 143(3) on abated assessments. Taking into consideration all the facts and circumstances and also the fact that the appellant is avoiding in giving the requisite details viz. details of insurance policies, electricity expenses, copy of passport and also considering that the appellant is having a luxurious life style (refer to valuables which were found during the search and the copy of Annexure A-6 of Panchnama is part of this order), inevitable conclusion reaches that the appellant cannot survive on a monthly expenditure of ₹ 32,000 approximately which is just around approximately ₹ 4500 per family member p.m. Accordingly, AO is right in making an addition on account of low household withdrawals to the extent of ₹ 2,40,000 in appellant’s hands in the year under consideration, and the addition made by him is therefore upheld.We find no infirmity in these findings of the ld. CIT(A). The argument of the ld. Counsel for the assessee the two HUF have been considered as adult members, do not help his case. The AO in our view is justified in estimating this household expenditure. Further in this case, the assessee did not provide the details as sought by the first appellate authority. This lead to adverse inference. - Decided against assessee.
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