Tribunal grants relief on cash balance & household expenses, directs AO to delete/add partially.

The tribunal partially allowed the appellant's appeals challenging the addition of cash balance and unexplained household expenses. The tribunal directed the assessing officer to delete the addition of cash balance, considering it as an estimate due to a bank withdrawal. Regarding unexplained household expenses, the tribunal restricted the addition to 50% due to lack of verification on joint expenses and adhoc estimation. The orders were pronounced on 09.05.2019, resulting in partial success for the appellant in addressing the issues raised for different assessment years.

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Issues involved:
1. Addition of cash balance
2. Addition of unexplained household expenses

Issue 1: Addition of cash balance
The appellant filed 7 appeals against the CIT(A)'s order for assessment years 2004-05 to 2010-11. The appellant challenged the addition of cash balance of Rs. 53,000 and Rs. 1,33,000 in the balance sheet and cash book, respectively. The assessing officer rejected the cash book as incomplete and added the amount under section 69 of the Income Tax Act. The appellant argued that the opening cash balance was an estimate due to a bank withdrawal and not unexplained income. The tribunal found the likelihood of savings and directed the AO to delete the addition.

Issue 2: Addition of unexplained household expenses
During assessment, the appellant failed to provide details of family members, household expenses, and sources of income. The AO estimated household expenses from Rs. 1,20,000 to Rs. 3,00,000 for different assessment years due to lack of evidence on expenses incurred. The CIT(A) upheld the AO's decision, stating that the lifestyle and standard of living indicated the need for estimation. The tribunal partially allowed the appeal, restricting the addition to 50% for lack of verification on joint expenses and adhoc estimation.

The tribunal addressed each ground of appeal for different assessment years, directing the AO to delete 50% of the additions made on account of low household expenses. The appeals were partly allowed, and the orders were pronounced on 09.05.2019.

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