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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 ..... the son of the assessee, the searched person, had given details of various household expenses and justified the source of the same, giving details and source of payments of various expenses, but there is no mention in the orders of the authorities below as to how the expenses stated to have been incurred did not justify the lifestyle of the assessee. It is but evident that there was no incriminating material pertaining to and justifying the addition made in the present case. - Decided in favour of assessee. - ITA Nos.73 And 74/Chd/2021 And ITA Nos.77 to 79/Chd/2021 - - - Dated:- 30-6-2021 - Smt. Annapurna Gupta, Accountant Member And Shri R.L. Negi, Judicial Member For the Assessee : Shri Sudhir Sehgal, Adv. For the Revenue : Smt.C. Chandrakanta, CIT DR ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: All the above appeals have been preferred by the same assessee against the separate orders of the Commissioner of Income Tax (Appeals)- 5, Ludhiana all dated 31.03.2021 relating to assessment years 2012 - 13, 2013 - 14, 2016 - 17 to 2018 - 19, passed u/s 250(6) of the of the Income Tax Act, 1961 (hereinafter referred to as Act ). 2. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re found at the time of search. The statement of Sh. Surinder Singh Bindra recorded on 20.11. 2017 regarding the amount of expenses on different household/kitchen items during the Financial Year 2010 - 11 and as on that date was also reproduced by the AO. It was also mentioned that Sh. Surinder Singh Bindra in his written submissions dated 23. 12. 2019 had stated that the household expenses of the joint family were taken care by his mother Smt. Harbhajan Kaur, the assessee. In the reply, it was also stated by Sh. Surinder Singh Bindra that there were sufficient household drawings for day to day kitchen expense. The detail of electricity expense and source of payment for assessment year 2012 - 13 to 2018 - 19 was also filed. The AO considered the reply and held that after taking into consideration the life style of the family and entirety of facts, it was fair reasonable to make addition @ ₹ 25000 /- per month in the hands of the assessee, being the head of the family, on account of low household withdrawals. Accordingly, an addition of ₹ 3, 00, 000 /- was made on this point. 6. Aggrieved by the same the assessee carried the matter before the Ld.CIT(A) who after c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating 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. 8. Before us the solitary argument of the Ld. Counsel for the assessee against the impugned addition was vis a vis Ground No.3, that since the assessment had been framed u/s 153 C of the Act, the same could have been done only on the basis of some incriminating material and in the present case the addition being made of household expenses, was a mere estimation by the AO without any incriminating material regarding the same in his possession. He, therefore, contended that in the absence of any incriminating material the impugned addition could not have been made as per law. 9. The Ld. DR, on the other hand countered by stating that the jurisdiction u/s 153 C of the Act could have been assumed by the AO only on the basis of some incriminating material and since the assessee had not challenged the jurisdiction, therefore, he was precluded from now taking a stand that there was no incriminat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, the searched person, had given details of various household expenses and justified the source of the same, giving details and source of payments of various expenses, but there is no mention in the orders of the authorities below as to how the expenses stated to have been incurred did not justify the lifestyle of the assessee. It is but evident that there was no incriminating material pertaining to and justifying the addition made in the present case. Even the Ld. DR had not brought before us any incriminating material to justify the addition. In view of the said fact and considering the settled legal position that the addition u/s 153 C of the Act can only be made only on the basis of incriminating material, we hold that the addition made in the present case of undisclosed household expenses is not tenable in law and direct the same to be deleted. 12. The contention of the Ld. DR that the jurisdiction u/s 153 C of the Act can be assumed by the AO only on coming in possession of some incriminating material relating to the assessee and since the assessee has not challenged it, and has in fact accepted it, it goes without saying that there was incriminating material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical to that in the assessment year 2012 - 13 dealt with in ITA No.73/Chd/2021, reproduced above. On going through the same we find that the Ld.CIT(A) had reduced the addition made by the AO of ₹ 3 lacs to ₹ 1,50,000 /- by noting that it was a mere estimation of the AO with no basis at all and, therefore, in the facts and circumstances, the addition of ₹ 1, 50,000 /- was justified. 18. We have held in the preceding year appeals above that there was no incriminating material justifying the addition and even the Ld.CIT(A) has noted absence of any basis for making the same. We have also noted that the son of the assessee had given details of all household expenses, stated to be incurred by his mother the assessee, and also justified sources for incurring the same. That the AO has given no basis for finding the expenses to be on the lower side and merely resorted to estimation. Even the LD. CIT(A), we find, has resorted to estimation without any basis while reducing the quantum of addition from ₹ 3 lacs to ₹ 1.50 lacs. With either of the Revenue authorities failing to justify the basis of holding that the assessee had incurred household expenses from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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