TMI Blog2016 (3) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred to sustain the impugned addition without any material on record to justify the low household expense. In view of the above, we are of the opinion that the Ld. CIT (A) erred in upholding the addition made by the AO on account of low household expenses and accordingly, we delete the addition - Decided in favour of assessee. - ITA No. 6053/Del/2013 - - - Dated:- 21-10-2015 - A. T. Varkey, JM And Prashant Maharishi, AM For the Appellant : Shri A K Babbar, Adv For the Respondent : Ms Nandita Kanchan, CIT DR ORDER Per A. T. Varkey, Judicial Member This appeal, at the instance of the assessee, is directed against the order of the Commissioner of Income-tax (Appeals)-XXXI, New Delhi dated 16.08.2013 for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39,871/-. 3. Aggrieved, the assessee filed an appeal before the first appellate authority and the ld. CIT (A) decided the appeal ex-parte and upheld the order of the AO as under :- 3.4 All the grounds relate to the only addition being on account of low withdrawals towards household expenses. The appellant had not explained before the AO the expenses relating to Telephone and electricity. I do not find any demerits in the addition. The statement of facts filed with Form No. 35 also does not give any contrary facts. Hence the addition made by the AO is confirmed. The ground is rejected. 4. The assessee, being aggrieved, is in appeal before us and has taken the following grounds of appeal :- (A) The impugned order passed by C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary caprice of a Judge, but on a settled and invariable principle of justice. Though there is an element of a guess-work in a Best Judgment Assessment yet it shall not be a wild one but shall have a reasonable nexus to the available material and the circumstances of the case. The assessing Authority should not be vindictive while making Best Judgment Assessment. The impugned order upholding order of Assessing Authority is in complete violation of above principles of law as there was no material before AO. To treat the House Hold withdrawal low. (E) Initiation of penalty proceedings duly confirm by CIT (Appeals) in impugned order is also illegal and without authority of law. (F) The assessee reserves his right to raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 96,800/- in cash and ₹ 3,88,214/- in cheque for various payment like school fees, electricity, water expenses and telephone expenses. The assessee lives in joint family and leads a simple life with no membership of any club. Considering the size and nature of living the total household drawing of ₹ 4,85,014/ are Justified for the running the household Ld. AR submitted that the assessee produced the drawing details regarding the expenses made on account of household expenses before the lower authorities. He submitted that the AO made the addition on account of low household withdrawal purely on guess work and no specific reason / documents or enquiry report was brought on record by the AO while enhancing the income by &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO. We take note that the AO has made the addition on account of low household expenses without any material before him and the impugned addition is a product of pure guesswork and can be safely inferred that the impugned addition is not based on any specific valid reason or documents or enquiry report brought on record. We take note that in the aforesaid case law relied upon by the ld. AR, the Hon'ble Apex Court held that, Though there is an element of a guess-work in a Best Judgment Assessment yet it shall not be a wild one but shall have a reasonable nexus to the available material and the circumstances of the case. The assessing Authority should not be vindictive while making Best Judgment Assessment . In the aforesaid facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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