TaxTMI 
TaxTMI 
2019 (5) TMI 748
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....he assessee's appeal in IT(SS)A No.89/Ind/2018 pertaining to the assessment year 2004-05. The assessee has raised following grounds of appeal: 1. That on facts and in the circumstances of the case of the assessee the learned Commissioner of Income Tax (Appeals) 1 was not justified in confirming the addition of cash balance to the extent of Rs. 53,000/-. 2. That on facts and in the circumstances of the case the assessee the learned Commissioner of Income Tax (Appeals) 1 was not justified in confirming the addition of Rs. 1,20,000/- towards unexplained household expenses. 3. The assessee craves leave to add, alter amend or withdraw any ground of appeal on or before the time of hearing. 2. Brief facts of the case are that a search u/s 1....
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....ew of the specific defects pointed out, he rejected the books of accounts furnished by the assessee since those are not complete and do not give a correct picture of the affairs of the assessee. The A.O. has noted in the assessment order that in the balance sheet as on 1.4.2003, cash in hand amounting to Rs. 53,000/- is shown whereas the cash in hand as per cash book as on 1.4.2003 is shown at Rs. 1,33,000/-. The A.O. rejected the cash book and was of the view that the assessee could not prove cash in hand of Rs. 1,33,000/-, the same was added u/s 69 of the Act. During the appellate proceedings, the A.R. submitted that the opening cash balance as on 1.4.2003 of Rs. 53,000/- was taken on an estimate basis as the assessee had withdrawn Rs. 55....
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....g the expenditure as well as sources thereof, the A.O. observed that household expenses were required to be estimated. In the cash books prepared by the assessee, the assessee had not shown any withdrawals for household expenses. Thus, the A.O. estimated household expenses of Rs. 1,20,000/- for A.Y. 2004-05; Rs. 1,50,000/- for A.Y. 2005-06; Rs. 1,80,000/- for A.Y. 2006-07; Rs. 2,10,000/- for A.Y. 2007-08; Rs. 2,40,000/- for A.Y. 2008-09, Rs. 2,70,000/- for A.Y. 2009-10; and Rs. 3,00,000/- for A.Y. 2010-11 i.e. ranging from Rs. 10,000/- per month in A.Y. 2004-05 to Rs. 25,000/- per month in A.Y. 2010-11. Since, the assessee failed to furnish any satisfactory explanation regarding the sources of amounts utilized for household expenses, the A.....
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.... maintained a car which would require some expenditure on running and maintenance. The assessee has not proved the source of any household expenditure. In these circumstances, the A.O. had no other option but to estimate the household expenses considering the size of the family, lifestyle and standard of living maintained by the assessee. The A.O. had made very moderate estimate of household expenses from Rs. 10,000/- to Rs. 25,000/- per month from A.Y. 2004-05 to A.Y. 2010-11. Ld. CIT(A) stated that the estimate of household expenses made by the A.O. was extremely fair and reasonable and warrants no interference. Since, the assesee failed to furnish any satisfactory explanation/evidence regarding sources of the amounts utilized for househ....
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....xpenses jointly. This fact is not verified by the authorities below. Further, the addition has been made on adhoc estimate basis. Considering the totality of the facts, we restrict the addition to the extent of 50%. Ground of the assessee is partly allowed. 11. Ground No.3 is general in nature which needs no separate adjudication. 12. Now we take up ITA No.90/Ind/2018 for the A.Y. 2005-06. In this appeal, ground No.1 raised by the assessee is identical to ground No.2 raised by the assessee in ITA No.89/Ind/2018 except figures, which was already adjudicated in para 10 for the same reasoning this ground is also partly allowed. The A.O. is hereby directed to delete the 50% addition made on account of low household expenses. 13. Ground No.2....