TaxTMI 
TaxTMI 
2016 (9) TMI 550
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....eturn; b) Rs. 3,49,000/- on account of alleged low household drawings . c) Rs. 70,000/- on account of PPF deposit; 2. not deleting but merely setting aside and restoring the matter for verification to the AO the following additions made by him - a) Rs. 3,60,000/- on account of conveyance reimbursement b) Rs. 8,712/- petty amount Rs. 8,607/- on account of disallowance of deduction u/s 80C of the I.T. Act. All the above actions being arbitrary, erroneous and unsustainable in law, it is prayed that the same must be quashed with directions for appropriate relief." 3. During the course of hearing the ld. Counsel for the assessee at the very outset stated that he has the instruction not to ....
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....amily consisting of wife and only son were residing at their parental hometown at Village Dharampur, Tehsil Kalka, Haryana, which is small kasba in foot hill of Himachal and that the assessee's father-in-law who is a retired railway official was also residing at the same area. It was further stated that the assessee's wife alongwith their son was mostly residing with her father and all kitchen and miscellaneous expenses were met by her father who did not allow his daughter to spend any amount, since she was taking his care in last old age. It was further stated that his son was pursuing B.com from Government College, Kalka and nominal course fee was amounting to Rs. 3,000 per annum. It was contended that the assessee was living singly in So....
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.... Assessee and his family members and therefore, no statement has been submitted by assessee in this regards during the assessment proceedings. b. If AO had any doubt he could have further inquired into the matter. c. Assessing Authority has ignored the fact that Assessee's spouse along with her son was residing with her old age father and took care of her father and her father didn't allow to spend any amount for household expenses. d. Assessing Officer doesn't bring any evidence or information on file which proves that estimated drawings taken by the AO are adequate and made addition towards inadequate drawings which is bad in law. Reliance has been placed upon Judgment held by ITAT Chennai in case of....
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....annot be made on the basis of appellant financial status/class". Copy of Judgment is enclosed herewith. i. That total cash withdrawal from bank by assessee during the year is amounting to Rs. 32000.00 instead of Rs. 11,000.00 mentioned in the Para 3 of the order passed by the AO. Further, It is certainly not a leap in the dark. The Assessing Officer is not entitled to make a guess without evidence. An assessment based on mere conjecture, surmise or suspicion or irrelevant and inadmissible evidence and material is in valid and unsustainable in law. Hence, the unjustified addition may kindly be deleted." 9. The ld. CIT(A) after considering the submissions of the assessee sustained the addition by observing as under: ....
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....ounsel for the assessee reiterated the submissions made before the authorities below and further submitted that the assessee was having the sufficient cash to meet out the household expenses and in making the deposit to his PPF account. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified. 11. In his rival submissions the ld. DR reiterated the observations made by the AO and the ld. CIT(A) strongly supported the impugned order passed by the ld. CIT(A). 12. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, the contention of the assessee that his wife alongwith his son was residing with his father-in-law who was ....