KALPESH POPATLAL GALA, MUMBAI V. ASST CIT 17(3), MUMBAI

ITA 1942/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93102 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 10-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 11-03-2013
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.1942 //M/2013 (AY:2008 - 20 09 ) MR. KALPESH POPATLAL GALA, FLAT NO.1102, 11 TH FLOOR, BLDG. NO.74, MAITRI HEIGHTS, BHAUDAJI BHAVAN, MUMBAI - 19. / VS. ACIT 17(3), 6 TH FLOOR, R.NO.614, PIRAMAL CHAMBERS, LALBAUGH, PAREL, MUMBAI 400 019. ./ PAN : ACRPG 0744N ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : SHRI JEEVAN LAL LAVIDIYA / DATE OF HEARING : 10.06.2015 / DATE OF PRONOUNCEMENT :30 .06.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 11.3.3013 IS AGAINST THE ORDER OF THE CIT (A) - 16, MUMBAI DATED 3.12.2012 FOR THE ASSESSMENT YEAR 2008 - 2009. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING SOLITARY GROUND WHICH READS AS UNDER: THE ASSESSING OFFICER HAS ERRED IN MAKING AN ADDITION OF RS. 75,000/ - ON ACCOUNT OF INSUFFICIENT HOUSEHOLD WITHDRAWALS, INSPITE OF THE FACT THE APPELLANT AND HIS IMMEDIATE FAMILY MEMBERS HAVE WITHDRAWN A SUM OF RS. 6,92,732/ - FOR HOUSE HOLD EXPENSES. IN LIGHT OF THE ABOVE FACT S NO ADDITION ON THIS ACCOUNT IS CALLED FOR. 2. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE, WHO IS AN INDIVIDUAL, FILED THE RETURN OF INCOME DECLARING THE TOTAL INCOME OF RS. 11,09,956/ - . ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT AND THE ASSESSED INCOME WAS DETERMINED AT RS. 12,03,350/ - . IN THE ASSESSMENT, AO MADE AN ADDITIO N OF RS. 75,000/ - ON ACCOUNT HOUSEHOLD EXPENSES ON ESTIMATION BASIS . AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY . 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, CIT (A) CAME TO THE CONCLUSION THAT THE ADDITION 2 MADE BY THE AO IS REASONABLE AND THEREFORE, HE CONFIRMED THE ADDITION. AGAIN AGGRIEVED, ASSESSEE FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 4. DURING THE PROCEEDINGS BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE TO REPRESENT HIS CASE. CONSIDERING THE NATURE OF ADDITION MADE ON ESTIMATION BASIS, DESPITE NO REPRESENTATION ON ASSESSEES SIDE, WE PROCEED TO ADJUDICATE THE APPEAL ON MERITS WITH THE HELP OF THE LD DR. 5. ON THE OTHER HAND, LD DR BRIEFLY NARRATED THE ABOVE FACTS OF THE CASE AND HEAVILY RELIED ON THE ORDERS OF ASSESSING OFFICER AND THE CIT (A). 6. WE HAVE HEARD THE LD DR FOR THE REVENUE AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED ON TO THE RECORD. ON HEARING THE LD DR FOR THE REVENUE AS WELL AS THE RELEVANT MATERIAL PLACED ON RECORD, WE FIND, THE ADDITION OF RS. 75,000/ - WAS MADE BY THE AO ON ESTIMATION BASIS. CIT (A) CONFIRMED THE SAME BY HOLDING THAT THE ASSESSEES CONTENTION AS HE WOULD BE DEPENDENT FOR ALL HIS PERSONAL EXPENSES ON HIS FAMILY MEMBERS IS UNBELIEVABLE. WHILE CONFIRMING THE SAID ADDITION HE CAME TO A CONCLUSION T HAT THE WITHDRAWALS OF THE FAMILY MEMBERS ARE NOT ADEQUATE . I N PRINCIPLE, THE SAME CANNOT BE SUSTAINED BECAUSE IT IS A MATTER OF ESTIMATIONS AND NO INCRIMINATING EVIDENCE ARE BROUGHT OUT BY THE REVENUE AUTHORITIES TO SUPPORT SUCH ADDITION. CONSIDERING THE FACTUAL MATRIX OF THE PRESENT CASE, WE ARE OF THE OPINION THAT THE ADDITION MADE BY THE AO AND CONFIRMED BY THE CIT (A) IS ONLY ON ESTIMATION BASIS AND WITHOUT ANY EVIDENCE, WHICH IS NOT PERMISSIBLE IN LAW AND THEREFORE, THE ADDITION IS NOT SUSTAINABLE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2015. SD/ - SD/ - (I.P. BANSAL) (D. KARU NAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 30 .6 .2015 . . ./ OKK , SR. PS 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI