Sh. Manjeet Singh Malik, Aligarh V. I.T.O., Ward-2, Aligarh

ITA 11/AGR/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0241 (ITAT-AGRA)
• Duration Of Justice: 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 08-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 11/AGRA/2013 ASSTT. YEAR : 2005-06 SH. MANJEET SINGH MALIK, VS. INCOME-TAX OFFICER, PRAG MILL COMPOUND, WARD-2, ALIGARH. RAMGHAT ROAD, ALIGARH. (PAN : AYNPS 8244 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PANKAJ GARGH, ADVOCATE RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 31.01.2013 DATE OF PRONOUNCEMENT OF ORDER : 01.02.2013 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A), MUZAFFARNAGAR DATED 30.10.2012 FOR THE ASSESSMENT Y EAR 2005-06, CHALLENGING THE ADDITION OF 50,000/- ON ACCOUNT OF LOW HOUSEHOLD WI THDRAWALS. 2. THE AO MADE ADDITION OF RS.1,20,000/- ON ACCOUN T OF HOUSEHOLD EXPENSES. THE FAMILY OF THE ASSESSEE CONSISTED OF HIMSELF, WI FE AND TWO YEARS OLD SON. THE ASSESSEE HAD NOT WITHDRAWN ANY MONEY FOR HOUSEHOLD EXPENSES. HIS WIFE IS ASSESSED TO TAX AND HAS MADE WITHDRAWALS FOR HOUSEH OLD EXPENSES AT RS.60,300/- FROM RENTAL INCOME. IT WAS, THEREFORE, CONTENDED BE FORE THE LD. CIT(A) THAT SINCE IN ITA NO. 11/AGRA/2013 2 THE SUBSEQUENT ASSESSMENT YEAR 2006-07, THE AO HAS ACCEPTED SIMILAR WITHDRAWALS AT RS.60,000/- AND WIFE HAS SHOWN SUFFICIENT WITHDR AWALS, THEREFORE, THE ADDITION IS UNJUSTIFIED. THE LD. CIT(A), CONSIDERING THE HOUSEH OLD EXPENSES ACCEPTED AT RS.60,000/- IN SUBSEQUENT ASSESSMENT YEAR, RESTRICT ED THE ADDITION TO RS.50,000/- AND DELETED THE ADDITION OF RS. 70,000/-. 3. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, I AM OF THE VIEW THAT THE ADDITION IS STILL ON EXCESSIVE SIDE. IT IS NOT IN DISPUTE TH AT THE ASSESSEE HAS NOT SHOWN ANY HOUSEHOLD WITHDRAWALS IN THE ASSESSMENT YEAR UNDER APPEAL. THEREFORE, IT IS NECESSARY TO ESTIMATE THE HOUSEHOLD EXPENSES OF THE ASSESSEE, EVEN IF WIFE OF ASSESSEE HAS SHOWN WITHDRAWALS FROM RENTAL INCOME. FURTHER, THE HOUSEHOLD WITHDRAWALS MADE BY THE WIFE OF THE ASSESSEE SHOULD ALSO BE TAKEN INTO CONSIDERATION WHILE ESTIMATING THE HOUSEHOLD EXPENS ES. CONSIDERING THE ABOVE FACTS AND THAT THE ASSESSEE IS HEAD OF THE FAMILY, THEREFORE MERELY SOME HOUSEHOLD WITHDRAWALS HAVE BEEN SHOWN BY HIS WIFE, WOULD NOT PROVE THAT HE WAS DEPENDENT UPON WIFES HOUSEHOLD WITHDRAWALS. BEING HEAD OF TH E FAMILY, IT IS EXPECTED THAT THE ASSESSEE HAS SPENT AMOUNT, WHICH THE ASSESSEE H AS FAILED TO EXPLAIN IN THIS CASE. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND WIFE OF ASSESSEE HAS SHOWN WITHDRAWALS, IT WOULD BE REASONABLE AND A PPROPRIATE TO ESTIMATE THE HOUSEHOLD EXPENSES IN THE HANDS OF THE ASSESSEE AT RS.30,000/- INSTEAD OF ITA NO. 11/AGRA/2013 3 RS.50,000/- COMPUTED BY THE LD. CIT(A). THUS, THE A DDITION ON ACCOUNT OF HOUSEHOLD EXPENSES IS RESTRICTED TO RS.30,000/-. AS A RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY