ITAT overturns CIT(A)'s decision on low household drawing addition due to lack of evidence

The ITAT allowed the assessee's appeal against an addition made by the AO for low household drawing. The CIT(A)'s reduction of the addition was set aside due to lack of evidence from the Revenue to prove higher expenses. Emphasizing the need for evidence under section 69C of the Income Tax Act, the ITAT referred to a relevant case law and deleted the addition. The appeal was allowed as neither the Revenue nor the DR provided evidence.

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Issues involved: Assessment of household drawing u/s 69C of the Income Tax Act.

Summary:
The appeal was filed against the CIT(A)'s order sustaining an addition made by the AO on account of low household drawing. The AO estimated the household drawing of the assessee at a lump sum amount, leading to an addition. The CIT(A) reduced the addition after estimating the household expenses. The ITAT noted the lack of evidence from the Revenue to prove the assessee's higher expenses. Referring to section 69C of the Income Tax Act, the ITAT emphasized the need for evidence to shift the onus to the assessee. Citing the decision in CIT Vs Daulat Ram Rawatmall, the ITAT set aside the CIT(A)'s order and deleted the addition made by the AO. No evidence was presented by the Revenue or the DR. Consequently, the appeal of the assessee was allowed.

Order pronounced in the open court on 9.10.09.

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