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2023 (5) TMI 1108 - AT - Income TaxAddition on account of house hold drawings - assessee being a senior citizen was living at his own house with his wife with no other liabilities - HELD THAT - The details of expenses mentioned elsewhere appears to be very reasonable as the expenses relating to electricity, gas, telephone were paid by account payee cheque also the medical expenses have been paid by cheque and no adverse inference have been drawn in respect of this detail. AO has simply estimated the expenses whereas the assessee has furnished the actual details, therefore, considering the age of the assessee no merit in the addition made by the AO - Appeal of the assessee allowed.
Issues involved:
The appeal against the order of the CIT(A)-27, New Delhi dated 28.03.2019 pertaining to A.Y.2013-14 with regard to the addition of Rs.4.80 lacs on account of house hold drawings. Issue 1: Addition of Rs.4.80 lacs on account of house hold drawings - The AO estimated house hold drawings at Rs.40,000/- per month due to lack of plausible reply from the assessee during scrutiny assessment proceedings. - Assessee's total expenses/withdrawals were detailed, including cash withdrawals and payments made by cheque for various household expenses. - Assessee, a senior citizen living with his wife, provided explanations and additional evidences to justify the expenses. - CIT(A) upheld the addition based on the remand report from the AO, stating the withdrawals were insufficient. - Counsel for the assessee argued that the withdrawals were adequate considering the age and circumstances of the assessee. - Tribunal found the expenses mentioned by the assessee to be reasonable, as payments for electricity, gas, telephone, and medical expenses were made by cheque. - Considering the age and living situation of the assessee, Tribunal concluded that the addition made by the AO was unjustified and directed the deletion of Rs.4.80 lacs. - The appeal of the assessee was allowed, and the order was pronounced in the open court on 25.05.2023.
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