TMI Blog2016 (1) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... . On this basis itself, the addition in each of the assessment years cannot be sustained otherwise also noted that in this case the AO has simply taken the withdrawal made by Sri Mahaveer Singh, i.e., the assessee, ignoring the fact that the assessee was residing in Hotel Neelam along with his wife, Smt. Aruna Sankhla, sons Sri Hement Raj Sankhla, Sri Harsh Raj Sankhla and daughter, Sarita Shankla who were the partners thereof. On the basis of the chart if the drawings of all the family members who were putting together are taken into account the drawings of all the family members were much more than the drawings estimated by the AO. On this basis also, the addition is liable to be deleted. The total disallowance in each of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The brief facts of the case are that the AO during the course of assessment, framed under s. 143(3) r/w. s. 153A for each of the asst yrs. 2004-05 to 2010-11 asked the assessee to submit the details of the household withdrawals accordingly assessee submitted that all his family members are putting up jointly in Hotel Nilam and they made the following drawings: The AO noted that during the asst. yr. 2004-05 the household withdrawal was ₹ 549175 while in the subsequent years it: was ₹ 3,14,920 and therefore, he estimated the trading of the assessee for each of the assessment years as under: Asst. yr. 2005-06 ₹ 275000 Asst. yr. 2006-07 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 2010-11 ₹ 147644 4. The assessee went in appeal before the CIT(A), CIT(A) confirmed the order of the AO in each of the assessment years. 5. I heard the rival submissions and carefully considered the same along with the order of the tax authorities below. I noted that in this case there had been search in assessee's group but no evidence or material whatsoever has been found which may prove that the drawings made by the assessee were less than the actual expenditure incurred by the assessee for his personal use. It is a case where the addition has been made by the AO just on estimate basis. The provision of s. 69C does not empower the AO to make the addition merely on estimate basis, this secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amily members who were putting together are taken into account the drawings of all the family members were much more than the drawings estimated by the AO. On this basis also, the addition is liable to be deleted. I have also looked into the estimate made by the AO, the AO has not worked out the expenditure of the assessee as well as family. It is an undisputed fact that the assessee's family was putting up in M/s. Hotel Neelam in which the assessee's family members were the partners that in each of the assessment years in the case of M/s. Hotel Neelam the AO has disallowed the expenditure for personal use, for electricity, telephone, conveyance and depreciation of vehicle. The total disallowance in each of the assessment years as h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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