Shri Parthiv Kaushal Mehta, Ahmedabad V. The Dy.CIT.,Circle-11, Ahmedabad

ITA 113/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60226 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-03-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 16-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BEN CH, AHMEDABAD (BEFORE SHRI G.C.GUPTA VICE PRESIDENT & SHRI ANIL C HATURVEDI, A.M.) I.T.A. NO. 113 /AHD/2012 (ASSESSMENT YEAR: 2008 - 09 ) SHRI PARTHIV KAUSHAL MEHTA, 4, JAIN MERCHANT SOCIETY, PALDI, AHMEDABAD-380 007. (APPELLANT) VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11, NARAYAN CHAMBERS, NEAR PATANG HOTEL, ASHRAM ROAD, AHMEDABAD. (RESPONDENT) PAN: AFCPM 9240H APPELLANT BY : MS. URVASHI SHODHAN RESPONDENT BY : MR. SAMIR TEKRIWAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 19-3-2012 DATE OF PRONOUNCEMENT : 13/4/2012 PER: SHRI ANIL CHATURVEDI,A.M. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF LD. CIT (A) XVIA, AHMEDABAD DATED 5-10-2011 FOR THE ASSESSM ENT YEAR 2008- 09. ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 2 2. IN THIS CASE THE ASSESSEE RAISED THE FOLLOWING G ROUND :- LD. CIT 9A) ERRED IN LAW AND ON FACTS IN CONFIRMI NG ADHOC ADDITION OF RS. 1,20,000/- OUT OF TOTAL ADDITION OF RS.3,00,000/- MADE BY A.O. ON ACCOUNT OF LOW WITHDRAWALS FOR HOUS EHOLD EXPENSES. LD. CIT (A) ERRED IN NOT APPRECIATING CAP ITAL ACCOUNT SUBMITTED WITH DETAILED EXPLANATION IN SUPPORT OF S UFFICIENT WITHDRAWALS TO MEET DAY TO DAY EXPENSES. LD. CIT (A ) OUGHT TO HAVE DELETED ADHOC ADDITION MADE BY ASSESSING OFFIC ER IN ABSENCE OF ANY EVIDENCE BROUGHT ON RECORD THAT ANY SUCH EXPENSES WERE MADE OUT OF UNDISCLOSED SOURCES BY TH E APPELLANT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS UNMARRIED YOUNG BOY OF 25 YEARS AND WAS EMPLOYED WITH GOLDMA N SACH (INDIA) PVT. LTD., BANGALORE. AS PER SALARY CERTIFICATE HE HAS DRAWN OF RS.5,78,464/- FOR THE PERIOD FROM APRIL,2007 TO JUL Y,2007 I.E. FOR FOUR MONTHS. FROM AUGUST, 2007 TO JANUARY,2008 HE WAS P OSTED AT MUMBAI BY GOLDMAN SACHS (INDIA) PVT. LTD., AND HE H AS DRAWN SALARY OF RS.5,48,193/- FOR SIX MONTHS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. OBSERVED THAT THE WITHDRAWALS FROM BANK ACCOUNT ARE MADE ONLY FOR INVESTMENTS AND NO AMOUNT WAS WITHDRAWN TO MEET THE HOUSEHOLD EXPENSES. FROM, THE COPY OF C APITAL ACCOUNT IT WAS SEEN THAT HE HAD MADE PAYMENT OF RS.6500/- PER MONTH FOR RENT BY WITHDRAWAL FROM JULY,2007 TO JANUARY,2008. ACCOR DING TO THE A.O. ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 3 CONSIDERING THE QUALIFICATION AND THE POSITION HELD AND PLACE OF POSTING AND SALARY DRAWN A.O. ESTIMATED RS.25,000/- PER MONTH I.E. RS.3 LACS PER ANNUM AND ADDED THE SAME AS INCOME FR OM UNDISCLOSED SOURCE. 4. AGGRIEVED WITH THE ORDER OF THE A.O. ASSESSEE C ARRIED THE MATTER IN APPEAL BEFORE THE CIT (A). BEFORE CIT (A ), THE ASSESSEE FURNISHED LEDGER ACCOUNT, CAPITAL ACCOUNT AS WELL A S PERSONAL EXPENDITURE. IT WAS STATED THAT THE ASSESSEE HAD MA DE TOTAL EXPENDITURE OF RS.2,65,795/- FOR HIS HOUSEHOLD EXPE NSES, PERSONAL CONVEYANCE, ENTERTAINMENT AND HOUSEHOLD EXPENSES. I T WAS FURTHER STATED THAT NO EVIDENCE WAS BROUGHT BY THE A.O. TO ESTABLISH THAT THE ASSESSEE HAS INCURRED ANY PERSONAL CONVEYANCE EXPEN SES IN HIS BOOKS OF ACCOUNT. THE CONTENTION MADE BEFORE THE LD . CIT (A) WAS NOT ACCEPTED BY HIM AND HE HELD AS UNDER:- 2.2. I HAVE CONSIDERED THE SUBMISSION OF THE LD . COUNSEL AND THE FACTS OF THE CASE. THERE IS NO SUBSTANCE IN THE CONTENTION OF THE LD. COUNSEL THAT THE APPELLANT HAD MADE TOTAL P ERSONAL EXPENDITURE OF RS.2,65,795/- FOR HIS HOUSEHOLD EXPE NDITURE, PERSONAL CONVEYANCE, FOOD, ENTERTAINMENT AND HOUSE RENT EXPENDITURE. THIS CONTENTION IS CORRECT ONLY TO THE EXTENT OF PAYMENT OF HOUSE RENT FOR TEN MONTHS FOR RS.65,000/ - AND FOR CERTAIN EXPENSES INCURRED THROUGH CREDIT CARD. MAJO R OF THE EXPENSES ARE FOR INVESTMENT. THE ASSESSEES ACCOUNT ANT HAD ADMITTED BEFORE THE A.O. THAT THERE IS NO WITHDRAWA L FOR ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 4 HOUSEHOLD EXPENSES. THE FACTS NARRATED BY THE A.O. IN THE ASSESSMENT ORDER ARE THUS SEEM TO BE CORRECT AND UN DISPUTED. HOWEVER, CONSIDERING THE FACTS OF THE CASE, THE EST IMATED HOUSEHOLD EXPENSES SEEM TO BE ON HIGHER SIDE. CONSI DERING THE FACTS OF THE CASE, IT WILL MEET THE END OF JUSTICE IF THE SAME IS RESTRICTED TO RS.10,000/-P.M. OVER AND ABOVE WHAT W AS WITHDRAWN. THE ADDITION OF RS.1,20,000/- IS ACCORDI NGLY SUSTAINED AND REST OF THE ADDITION IS DELETED. THE FIRST GROUND OF APPEAL IS PARTLY ALLOWED. 5. AGGRIEVED BY THE ORDER OF CIT (A), ASSESSEE IS N OW IN APPEAL BEFORE US. 6. BEFORE US ASSESSEE HAS FILED COPY OF BALANCE SHE ET AND PROFIT AND LOSS ACCOUNT. HE HAS ALSO FURNISHED A COPY CAPI TAL ACCOUNT, LEDGER ACCOUNT OF PERSONAL EXPENSES ACCOUNT. FROM T HE COPY OF THE [PERSONAL EXPENSE ACCOUNT AND HIS CAPITAL ACCOUNT I T CAN BE SEEN THAT ASSESSEE HAS INCURRED EXPENDITURE OF RS.2,65,795/- AS PERSONAL EXPENSES. THESE EXPENSES HAVE BEEN INCURRED BY USE OF CREDIT CARD. HIS LEDGER ACCOUNT ALSO REVEALS THAT APART FROM THE EXPENDITURE OF RS.2,65,795/- INCURRED, HE HAS ALSO INCURRED EXPENS ES ON ACCOUNT OF TRAVEL, MEMBERSHIP FEES, INCOME TAX, INSURANCE PREM IUM ETC. THESE FACTS HAVE NOT BEEN CONTROVERTED BY THE LD. D. R . IN VIEW OF THE TOTALITY OF THE FACTS AND THE FINDINGS GIVEN BY LD. CIT(A) WE ARE OF THE VIEW THAT NO ADDITION IS CALLED FOR AND ALSO IN VIE W OF THE FACT THAT A.O. HAS NOT BROUGHT ANY EVIDENCE TO ESTABLISH THAT THE ASSESSEE HAS ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 5 INCURRED EXPENDITURE OUT OF HIS BOOKS. IN VIEW OF THESE FACTS, WE ARE OF THE VIEW THAT THE ADDITION MADE IS UNCALLED FOR. THEREFORE, WE DIRECT THE A.O. TO DELETE THE ADDITION MADE. 7. GROUND NO.2 AND 3 ARE CONSEQUENTIAL IN NATURE AN D THEREFORE, DO NOT REQUIRE ADJUDICATION. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 13-4 - 2012. SD/- SD/- (G.C.GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) XVI,AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABA ITA NO.1 13/AHD/2012 ASSESSME NT YEAR 2008- 09 . 6 1.DATE OF DICTATION 19 - 3 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 9 / 4 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 11 - 4 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 13 - 4 -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 13 - 4 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 3 - 4 -2012. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..