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TMI Blog2015 (7) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... e standard of living the assessee and his other members and these are material based on which an addition can be made for low drawing. Thus this legal argument of the assessee is dismissed on the issue of addition made u/s 153A r.w.s. 143(3) on abated assessments. Taking into consideration all the facts and circumstances and also the fact that the appellant is avoiding in giving the requisite details viz. details of insurance policies, electricity expenses, copy of passport and also considering that the appellant is having a luxurious life style (refer to valuables which were found during the search and the copy of Annexure A-6 of Panchnama is part of this order), inevitable conclusion reaches that the appellant cannot survive on a monthly expenditure of ₹ 32,000 approximately which is just around approximately ₹ 4500 per family member p.m. Accordingly, AO is right in making an addition on account of low household withdrawals to the extent of ₹ 2,40,000 in appellant’s hands in the year under consideration, and the addition made by him is therefore upheld.We find no infirmity in these findings of the ld. CIT(A). The argument of the ld. Counsel for the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Affairs and books of account, it is presumed that the assessee is meeting out the personal expenses out of undisclosed sources of his income. Hence, it is estimated that the assessee is incurring expenditure of ₹ 20,000/- per month on account of household expenses. In view of the above, the total disallowance on this account comes to ₹ 2,40,000/- (Rs.20,000/- X 12). (Addition : ₹ 2,40,000/-) 4. Aggrieved the assessee carried the matter in appeal challenging the addition, both on legal grounds, as well as on factual grounds. The assessee challenged the jurisdiction of the AO to making additions u/s 153A of the Act for the assessment years 2003-04 to 2007-08 on the ground that no incriminating material was found during the course of search and as the assessments for these assessment years have abated and hence the addition is bad in law. For the A.Y. 2008-09, as well as for the earlier assessment year the addition was challenged on merit. The first appellate authority rejected the contentions of the assessee on the issue of additions made u/s 153A for abated assessments on the ground that here was no incriminating material found during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... needs to be undone and it is to be held that assessment is concluded on processing of return u/s 143(1) of the Income Tax Act, 1961 if no notice u/s 143(2) of the Income Tax Act 1961 is issued within statutory time period allowed and can abate. 5. On the facts and circumstances of the case the Commissioner of Income Tax (Appeal) is not justified in holding that list of valuables found at the time of search and stated in Panchnama are incriminating evidence though Ld. AO has not drawn any such inference or made any addition on account of these valuables, as such the action of Ld. CIT(A) is based on surmises and conjectures and contrary to provisions of law and the same needs to be undone and any addition confirmed which is based on such inference needs to be deleted. 6. On the facts and circumstances of the case the Commissioner of Income Tax (Appeal) is not justified in confirming the action of Ld. AO in disturbing the completed assessment u/s 143(1) of the Income Tax Act, 1961 which does not abate in the absence of any seized material pertaining to the assessment year under consideration and making an ad-hoc addition of ₹ 2,40,000 on account of household expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order and submitted that this material is found during the course of search and based on this material an inference was drawn by the AO in abated assessments also. While supporting, the finding of the first appellate authority that the addition is based on the material seized during the course of search, he took this bench through the copy of Panchnama drawn during the course of search. 12. Rival contentions heard. On a careful consideration of the facts and circumstances of the case, a perusal of the papers on record and the orders of the authorities below, we hold as follows; 13. It is true that no addition can be made in respect of unabated assessments, if no incriminating material is found during the course of search. The recent judgment of the Hon ble Bombay High Court in the case of Continental Warehousing Corporation (Supra) supports that the argument of the assessee. In this case during the course of search, certain valuables were found. A list of the same is found in the panchnama. There valuable assets include billiards table, piano, expensive paintings, chandlier, centrally air conditioner system etc. Thus in our view the ld. CIT(A) is correct in coming to a concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08 2008-09 Withdrawal per annum 3,91,050 4,48,745 5,80,745 5,48,000 5,64,000 9,65,080 9,74555 Therefore withdrawal per month will be 32,587 37,395 48,395 45,666 47,000 80,423 81,171 Hence withdrawal per family member per month will be 4,555 5,342 6,913 6,523 6,714 11,489 11,595 6.2 From the above chart it is quite surprising to note that the appellant who is living with 7 adult family members in a mansion at Prithvi Raj Road, New Delhi and driving best of the vehicles, can meet their household expenses in approx. ₹ 32,000 p.m. during the assessment year 2002-03 and within the range of ₹ 47,000 p.m . in assessment year 2006-07 and within the range of ₹ 80,000 approx in assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * having a billiards table, piano expensive paintings, chandlier, centrally air-conditioned house etc. (refer to panchnama filed by the appellant alongwith its submissions) I hold that it is impossible to believe that the appellant and his family can maintain themselves on a monthly expenditure ranging from ₹ 32,000 p.m. to ₹ 47,000 p.m. during the assessment year 2002-03 to 2006-07 and around ₹ 80,000 p.m. in the assessment years 2007- 08 and 2008-09. 6.7 Taking into consideration all the above facts and circumstances and also the fact that the appellant is avoiding in giving the requisite details viz. details of insurance policies, electricity expenses, copy of passport and also considering that the appellant is having a luxurious life style (refer to valuables which were found during the search and the copy of Annexure A-6 of Panchnama is part of this order), I come to the inevitable conclusion that the appellant cannot survive on a monthly expenditure of ₹ 32,000 approximately which is just around approximately ₹ 4500 per family member p.m. Accordingly, AO is right in making an addition on account of low household withdrawals to ..... 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