TMI Blog2013 (4) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... 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expenditure estimated by the CIT(A) works out to Rs. 3,88,870/- whereas the fact remains that the assessee had withdrawn a sum of Rs. 4,40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in not adjudicating the charge of interest u/s 234B and 234C of the Act, having regard to the fact of the case. The appellant denies its liability for payment of interest u/s. 234B and 234C of the Act." 3. The case of the assessee was that he earned income from salary only and since there was no seizure of valuables or incriminating documents from the assessee, issuance of notice under section 153A of the Act is bad in law. In the opinion of the AO assessment under section 153A is mandatory even where no incriminating document is found during the course of search. The learned CIT(A) confirmed the view taken by the AO wherein he has referred to the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 4,40,206/-. Consequent to the search proceedings assessments were reopened by issuing notice under section 153A of the Act wherein the AO simply made an adhoc addition of Rs. 1,50,000/- in each assessment year on account of household expenses by observing as under: - "5. On perusal of household expenses and withdrawals shown by the assessee in this regard, it can be seen that the assessee's withdrawals towards household expenses are insufficient. Looking to the status and size of the family of the assessee, an addition of Rs.1,50,000/- is made to the total income of the assessee on account of household expenses......" 7. Aggrieved assessee contended before the CIT(A) that he was only an employee drawing salary income and incurred hou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has his own house. Similarly, for the subsequent year, i.e. for F.Y. 2007-08 the assessee's withdrawals were to the tune of Rs. 4,40,206/- which is more than Rs. 35,000/- per month. 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 brining 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 add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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