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TMI Blog2021 (9) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in the case of one Shri Surinder Singh Bindra at his residential premises on 01-11-2017, during the course of which certain documents relating to his mother Smt.Harbhajan Kaur, the assessee, were found and seized. On the basis of the same, jurisdiction u/s 153 C of the Act was assumed by the Assessing Officer (AO) of the assessee to assess income for six years prior to the year of search. For the search year jurisdiction was assumed to assess the income u/s 143 (3) Act. Thereafter orders were passed and the solitary addition made in all the cases pertained to that on account of undisclosed household expenses. Ld. Counsel for the assessee stated that his argument in the appeals pertaining to orders framed u/s 153 C of the Act was common, challenging the jurisdiction of the AO to make the addition. While in the appeal pertaining to the search year his arguments were confined to the merits of the case alone. He therefore begin by making arguments in the appeals pertaining to orders passed u/s 153C of the Act in ITA Nos. 73, 74, 77,& 78 /Chd/2021. 4. Ld.Counsel for the assessee stated that he would be basing his arguments on the facts relating to the appeal in ITA No. 73 /Chd/2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintaining a common kitchen and during the course of search, no incriminating material with regard to incurring of household expenses was found. It is further submitted that during the assessment, the detail of household drawing and other expenses were submitted to the AO who as per the AR, has not pointed out any mistake or error. It is also submitted that the AO has made the addition on estimated basis by simply estimating the certain expenses over and above the household drawing of the joint family. It is also contended that there was no evidence of incurring of household expense over and above, the amount disclosed/explained during the assessment and the onus was upon the AO to show that a particular amount was incurred for the purpose of household. A perusal of the assessment order shows that the AO has not mentioned anything how he arrived at the figure of Rs. 25,000/- per month, added to the income of the assessee in the absence of any working about the total yearly/monthly household expenses of the family and the corresponding drawing shown for this purpose. It is however relevant to mention here that the chart reproduced by the Assessing Officer in the assessment order wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contentions of both the parties and have also carefully gone through the orders of the authorities below. Undoubtedly, the assessments in the impugned years before us have been framed u/s 153C of the Act in consequence to search action undertaken on the son of the assessee. It is settled law that any addition made u/s 153C of the Act has to be based on some incriminating material found. The Hon'ble Apex Court in the case of CIT vs Sinhgad Technical Education Society in Civil Appeal No. 11080 of 2017 dated 29.08.2017 has laid down that for addition to be made u/s 153 C of the Act, the seized material has to pertain to the assessment year in question and have correlation document wise with the AY. 11. On going through the order of the AO we do not find mention of any incriminating material relating to household expenses to have come in his possession to show that the same were being incurred from undisclosed sources. Except for the fact that the son of the assessee stated that household expenses were taken care of by his mother, the assessee, and the fact that nature of certain expenses incurred were brought to light as being incurred on children' s education, servants, cars main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstrating that there was not incriminating material, we are left with no option but to hold that the said additions could not have been made as per law. 13. No arguments on the merits of the case were made before us which in any case is merely an academic exercise since we have deleted the addition on the legal ground raised before us as above. The appeal of the assessee is allowed in above terms. The appeals of the assessee in ITA Nos. 74, 77 & 78 /Chd/2021 are also allowed in above terms 14. Now taking up the appeal for assessment year 2018- 19 in ITA No. 79 /Chd/2021, The grounds raised are identical as in A.Y. 2012 - 13 dealt with us above as under: "2. That the CIT (A) has erred in confirming the addition on account of the undisclosed household expenses amounting Rs. 1,50,000/- without any basis. 3. That the Ld. C!T(A) has failed to appreciate that no incriminating evidence was found during the course of search relating to the part additions as confirmed by the Worthy CIT(A). 4. That the Ld. CIT (A) has erred in not considering and ignoring the submissions and facts as filed before the CIT (A) as well as before the assessing officer." 15. The Ld.Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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