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TMI Blog2014 (9) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting to Rs. 82,396/-. The assessee disclosed investment in the following assets:- Jewellery Account Rs. 2,96,300/- Investment Account Rs. 8,60,000/- Loans & Advances Rs.12,90,000/- Sundry deposits Rs. 2,21,500/- Cash and Bank Rs. 15,789/- Total Rs.26,83,589/- 4. The AO observed that no details of assets and liabilities were given in the return filed and, further, the assessee had not filed any return for this year as well as earlier years prior to search. On being called upon to explain as to why genuineness of capital, loans and advances and investments declared should be accepted as genuine along with the income declared, the assessee submitted a list of persons to whom loans and advances were given earlier along with their confirmations, which were claimed to be outstanding as on 31.3.2003. To verify the correctness of investment, loans and advances by the assessee, the AO required the assessee to show mode of the payment along with the dates on which such loans were given and also the purpose for which such loans were given. The assessee furnished reply dated 22.12.2010 which has been reproduced in the assessment order. The AO noticed that there was no source de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order on this issue is set aside and the matter is restored to the file of AO for re-deciding this issue in conformity with the directions given by the Tribunal in the case of Shri Sohan Lal Sharma. We order accordingly. 7. The only other ground in this appeal is against the sustenance of addition of Rs. 43,520/- on account of low household expenses. From the statement of affairs filed by the assessee, the AO observed that the assessee had declared household withdrawals at Rs. 16,580/-. Considering the status of the assessee as well as investments made in various companies, etc., the AO estimated annual household expenses at Rs. 1,80,000/-, which resulted into an addition of Rs. 1,63,420/-. The ld. CIT(A) estimated average monthly expenditure of Rs. 20,000/- for a family of husband, wife and two school going children. Since he sustained addition at Rs. 15,000/- per month in the hands of the assessee's husband, the estimate of Rs. 5,000/- per month totaling household expenses of the assessee at Rs. 60,000/- was considered to be appropriate. This resulted into reduction in the addition to Rs. 43,420/-, against which the assessee is aggrieved in the instant appeal. The ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are mutatis mutandis similar to those for AY 2003-04. Following the view taken hereinabove, we uphold the impugned order on this score. 15. In the result, the appeal is dismissed. Assessment year 2005-06 16. The first two grounds were not pressed by the ld. AR. The same are, therefore, dismissed. 17. Ground No.3 is against the treatment of Rs. 55,800/- as 'Income from other sources' instead of 'Salary' as declared by the assessee. As the facts and circumstances of this ground are admittedly similar to those of the preceding year, following the view taken hereinabove, we uphold the impugned order on this issue. This ground is thus dismissed. 18. The only other surviving ground in this appeal is against the sustenance of addition of Rs. 36,600/- on account of low household expenses. Here again, we find that the AO estimated the household expenses at Rs. 1,80,000/- per annum. The ld. CIT(A) reduced such estimate of the assessee's household withdrawals to Rs. 5,000/- per month, which resulted into sustenance of addition at Rs. 36,600/-. Following the view taken above in earlier years, we uphold the impugned order on this issue. This ground fails. 19. In the result, the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,89,570/-. The ld. CIT(A) estimated the monthly expenditure at Rs. 30,000/- for family. Since he estimated the expenses at Rs. 18,000/- per month in the hands of the assessee's husband, the estimate was restricted to Rs. 12,000/- per month in the hands of the assessee. This resulted into sustenance of addition of Rs. 1,17,570/-. 29. After considering the rival submissions and perusing the relevant record, we find that in the preceding year, the ld. CIT(A) made estimate of household expenses for family at Rs. 20,000/- out of which Rs. 15,000/- per month was treated in the hands of the assessee's husband and Rs. 5,000/- in the hands of the assessee. For the current year, the ld. CIT(A) increased such estimate to Rs. 30,000/- by restricting the estimate to Rs. 18,000/- per month in the hands of the assessee's husband. We find this jump of 50% in family household expenses from Rs. 20,000/- to Rs. 30,000/- per month is a little excessive. In our considered opinion, it would be in the fitness of the things to estimate monthly family household expenses at Rs. 25,000/-. Since the ld. CIT(A) has retained Rs. 18,000/- in the hands of the assessee's husband, it would be necessary to make est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. Briefly stated, the facts of the case are that the assessee filed return declaring income of Rs. 1,82,590/-. The assessee declared receipt of interest on loan at Rs. 84,700/- in her capital account, whereas in the return, interest income was shown at Rs. 19,650/- which was also claimed to be deductible under Chapter VI-A of the Act. Thus, the only business income of Rs. 1,82,590/- remained. In the absence of any details, the AO estimated the total income at Rs. 3,50,000/-. The ld. CIT(A) upheld this estimate. The assessee is in appeal against such consolidated estimate of income. 40. We have heard the rival submissions and perused the relevant material on record. In our opinion, such ad hoc estimate of income without any base is not sustainable. We proceed to consider the different aspects of the assesse's income. She declared interest income of Rs. 84,700 in her capital account. However, while computing total income, interest income was shown to the extent of Rs. 19,650 and then deduction was claimed as per Chapter VI-A of the Act for the full amount of such interest, without mentioning as to under which section such interest was deductible. The assessment year under consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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