2016 (1) TMI 1325

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....additions made on account of low household withdrawal in each of the years are as under: Asst. yr. 2005-06 Rs. 115000 Asst. yr. 2006-07 Rs. 190000 Asst. yr. 2007-08 Rs. 295000 Asst. yr. 2008-09 Rs. 280000 Asst. yr. 2009-10 Rs. 315000 Asst. yr. 2010-11 Rs. 160000 3. The brief facts of the case are that the AO during the course of assessment, framed under s. 143(3) r/w. s. 153A for each of the asst yrs. 2004-05 to 2010-11 asked the assessee to submit the details of the household withdrawals accordingly assessee submitted that all his family members are putting up jointly in Hotel Nilam and they made the following drawings: The AO noted that during the asst. yr. 2004-05 the household withdrawal was Rs.....

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....d carefully considered the same along with the order of the tax authorities below. I noted that in this case there had been search in assessee's group but no evidence or material whatsoever has been found which may prove that the drawings made by the assessee were less than the actual expenditure incurred by the assessee for his personal use. It is a case where the addition has been made by the AO just on estimate basis. The provision of s. 69C does not empower the AO to make the addition merely on estimate basis, this section stipulates that where in any financial year an assessee has incurred an expenditure and he offers no explanation about the source of such expenditure or part thereof. From this itself, it is apparent that the onus....

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....also looked into the estimate made by the AO, the AO has not worked out the expenditure of the assessee as well as family. It is an undisputed fact that the assessee's family was putting up in M/s. Hotel Neelam in which the assessee's family members were the partners that in each of the assessment years in the case of M/s. Hotel Neelam the AO has disallowed the expenditure for personal use, for electricity, telephone, conveyance and depreciation of vehicle. The total disallowance in each of the assessment years as has been depicted in the facts stated above whereas from Rs. 147087 to 18640 the estimate made by the AO should have been reduced by this expenditure or the AO should have considered this expenditure also, therefore, I am ....