2017 (9) TMI 659

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....n respect of inadequate personal expenses. During the course of the assessment proceedings, the A.O. has observed that the assessee is an individual deriving income from trading in Chillies and working charges. The assessee had filed a return of income by declaring total income of Rs. 2,03,726/-. The case of the assessee was selected for scrutiny and notices u/s 143(2) & 142(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') were issued to the assessee. The A.O. has also given sufficient opportunities to the assessee for hearing, however, the assessee has not appeared before the A.O. The assessee has not filed books of accounts and no evidence to support the return filed by him. Accordingly, A.O. has completed ex-parte....

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....penses treated as inadequate, it is held that the assessee has made a part of his personal expenses out of income from unexplained sources, the drawings are reasonably fixed at Rs. 2 lakhs and the difference of Rs. 66,881/- is added to the total income of the assessee. 3. Assessee carried matter in appeal before the CIT(A). The Ld. CIT(A) posted the appeal for several times. No one appeared. Finally in response to the notice of hearing on 21.11.2011, the assessee filed a written submission along with letter requesting to dispose of the appeal on merits. The Ld. CIT(A) by considering the written submissions of the assessee, the appeal filed by the assessee is disposed. So far as disallowance of expenses are concerned, the Ld. CIT(A) obser....

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..... CIT (2012) 232 ITR 776 and submitted that the order passed by the CIT(A) by confirming the order of the A.O. in respect of disallowance of expenditure and inadequate self drawings is contrary to the decision of Hon'ble jurisdictional High Court in the case of Indwell Constructed Limited Vs. CIT (supra) and submitted that the same may be deleted. 6. On the other hand, the Ld. D.R. strongly supported the order passed by the authorities below. 7. I have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. has given as many as opportunities to the assessee to substantiate his case before him. However, the assessee neither appeared before the A.O. nor filed any b....