2013 (4) TMI 543

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.... the Learned CIT(A) erred in not adjudicating the appellant's contention that initiation of proceedings u/s. 153A of the income Tax Act, 1961 ('the Act') are bad-in-law even though no assessment or re-assessment proceedings in relation to this year were pending as on the date of the search u/s. 132 of the Act. 2. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in confirming the addition (i.e. 30% of Rs.1,50,000) made by the Learned Assessing Officer on account of alleged low household expenses. The appellant prays that the confirmation by the Learned CIT(A) of 30% of addition made by the Learned Assessing Officer on account of alleged low household expenses may please be deleted. 3. On the facts ....

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.... learned CIT(A) and dismiss ground No. 1 of the assessee. 5. Facts necessary for disposal of ground No. 2 are stated in brief. For A.Y. 2007-08 the assessee declared total income of Rs. 5,68,495/-. It is not disputed that the assessee has shown withdrawal of Rs. 3,43,870/- for household expenses. His family consists of self, wife, son and his old aged mother. In other words the size of the family is four and assessee is residing in own flat wherein nominal annual maintenance fee is paid to the society. 6. In respect of previous year relevant to A.Y. 2008-09 assessee filed return of income on 11.08.2008 declaring total income of Rs. 10,64,090/- out of which the assessee shows household expenses and withdrawal to the extent of Rs. 4,40,....

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....previous year relevant to A.Y. 2007-08 the withdrawals were to the tune of Rs. 3,43,870/- whereas for the subsequent year the withdrawals were to the tune of Rs. 4,40,206/- but the learned CIT(A) overlooked this fact and merely assumed that the same expenditure was incurred in both the years and proceeded to estimate the household expenses. 8. Aggrieved, assessee is in appeal before us. The learned counsel submitted that in a small place like Pune a family consisting of only four persons including self can comfortably live by spending about Rs. 25,000/- per month in F.Y. 2006-07 whereas the assessee has withdrawn a sum of Rs. 3,43,870/- which works out approximately Rs. 28,500/- per month. It also needs to be noted that the assessee has ....