2013 (5) TMI 279

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..... The short question arising in this appeal is the validity in law of the addition in the sum of Rs.4.68 lakhs made in assessment for the relevant year on account of expenditure on remuneration of employees (i.e., four servants and two drivers), since confirmed by the first appellate authority. 3.1 Before us, it was submitted by the AR, the assessee's counsel, that the assessee's case is covered by the orders by the Tribunal in his own case for the preceding two years, i.e., A.Y. 2006-07 and 2007-08, copies of which stand placed on record. The assessee has made total cash withdrawals at Rs.11.41 lakhs, and the same, therefore, ought to be considered as reasonable and sufficient to meet all the house-hold expenses, including on the person....

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.... have clarified that the matter is primarily factual. Secondly, the principle of res judicata is not applicable to the proceedings of the Act, so that the matter has to be necessarily decided on the facts as found. The assessee has, however, even as pointed out by the ld. DR, failed to furnish the relevant details for the current year. There appears, however, to be no dispute with regard to the staff strength, i.e., four servants and two drivers. In fact, the question, thus, is of the expenditure that can be ascribed to their salaries, and the extent to which the assessee can be said to have met the same out of his cash withdrawals for the year, which are at Rs.5.40 lakhs (refer para 4.1 of the assessment order/PB pg. 11). The only order by....

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....inuing further, the order by the tribunal for A.Y. 2005-06, however, does not contain reference to the total withdrawals; it limiting itself to the question of the estimation of the reasonableness of the salary as claimed by the assessee on the personal staff. The background facts continue for the current year as well; the assessee, drawing annual salary to the tune of Rs.1.40 crores, is confirmed to be maintaining a good living standard in a posh area in south-mumbai. The assessee, though not denying the basic facts, including with regard to the employment of the staff, with in fact his return for the preceding year containing a note in this respect, has not furnished any details in the matter, despite being called upon by the A.O. during ....