Appeal details
Counselvise Citation
[2016] 132 COUNSELVISE.COM (IT) 6139 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
16-05-2016
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
SMC
Assessment Year
2009-2010
Appeal Filed On
15-03-2016
Judgement Text
SHYAMLAL HOLANI - SMC ITA 219 OF 2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO. 219/IND/2016 A.Y. 2009-10 SHYAMLAL HOLANI, VILLAGE KANTAPHOD, DISTT. DEWAS PAN AALPH 0969 E :: APPELLANT VS ADDL. CIT, RANGE-1, UJJAIN :: RESPONDENT ASSESSEE BY SHRI ANIL KAMAL GARG & SHRI ARPIT GAUR, CAS RESPONDENT BY SHRI R.A. VERMA, DR DATE OF HEARING 16.5.2016 DATE OF PRONOUNCEMENT 16.5.2016 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING T HE ORDER OF LD. CIT(A)-UJJAIN, DATED 02.12.2015. 2. FACTS, IN BRIEF, ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN ONLY RS.35,000/- AS HOUSEHOLD EX PENSES. THE ASSESSING OFFICER ASKED TO JUSTIFY THE SAME. THE AS SESSEE FURNISHED THE REPLY. HOWEVER, THE ASSESSING OFFICER LOOKING TO TH E STATUS OF ASSESSEES FAMILY (ASSESSEE BEING EX-MLA AND OWNING TWO VEHICL ES INCLUDING A NEW SHYAMLAL HOLANI - SMC ITA 219 OF 2016 2 VEHICLE PURCHASED DURING THE YEAR UNDER CONSIDERATI ON AND DRIVERS SALARY EVEN DEBITED, IN FULL, IN BOOKS OF ACCOUNT B ESIDES OWNING ONE HOUSE AT BHOPAL AND ONE GETTING CONSTRUCTED BY M.P. HOUSING BOARD AT MORE THAN RS.17 LACS), ESTIMATED WITHDRAWALS FOR HO USEHOLD EXPENSES AT RS.5 LACS IN THE HANDS OF THE ASSESSEE MAKING AN AD DITION OF RS.3,55,000/- [RS.5,00,000 (ESTIMATED) RS.35,000 (SHOWN BY THE ASSESSEE) RS.1,10,000 (PENSION AS EX-MLA AND NOT CREDITED TO CAPITAL ACCOUNT)]. THE LD. CIT(A), AGREEING WITH THE VIEW O F THE ASSESSING OFFICER, CONFIRMED THE ACTION OF THE ASSESSING OFFI CER. BEING AGGRIEVED, THE ASSESSEE IS BEFORE THIS TRIBUNAL. 3. BEFORE ME, LEARNED COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSIONS MADE BEFORE THE REVENUE AUTHORITIES AND SUBMITTED THAT THE FAMILY OF ASSESSEE CONSISTS OF HIMSELF, HIS WIF E, SON AND DAUGHTER-IN- LAW. ALL THE FAMILY MEMBERS WERE HAVING INDEPENDENT SOURCES OF INCOME AND ASSESSED TO TAX. HIS SON AND DAUGHTER-IN-LAW AR E HAVING THEIR SEPARATE SOURCES OF INCOME AND, THEREFORE, ASSESSEE IS REQUIRED TO INCUR EXPENDITURE ONLY FOR HIMSELF AND HIS WIFE. DURING T HE YEAR UNDER CONSIDERATION, THE ASSESSEE AND HIS WIFE, SENIOR CI TIZENS OVER 65 YEARS, HAVE SHOWN TOTAL HOUSEHOLD AT RS.1,72,910/-, WHICH IS REASONABLE AS THEY LIVE A VERY SIMPLE TRADITIONAL LIFESTYLE IN TH EIR OWN HOUSE IN A SMALL VILLAGE NAMELY KANTAPHOD ADJOINING DEWAS. THEY HAVE ALSO NOT INCURRED SHYAMLAL HOLANI - SMC ITA 219 OF 2016 3 ANY MEDICAL TREATMENT IN THE PRESENT YEAR. THE VEHI CLES BELONG TO ASSESSEES BUSINESS, THEREFORE, EXPENDITURE AND MAI NTENANCE OF THE VEHICLES HAVE BEEN DEBITED BY THE ASSESSEE IN THE P & L ACCOUNT OF THE PROP. CONCERN. THUS, THE ADDITION MADE ON THE BASIS OF PRESUMPTION AND ESTIMATION IS NOT JUSTIFIED. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 4. I HAVE HEARD RIVAL CONTENTIONS OF BOTH THE PARTI ES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. CONSIDERING THE SUBMI SSIONS OF BOTH PARTIES AND THE FACT THAT THE ASSESSING OFFICER EST IMATED THE HOUSEHOLD EXPENSES WITHOUT BRINGING ANY COGENT MATERIAL ON RE CORD, I AM OF THE VIEW THAT THE ASSESSING OFFICER IS SUPPOSED TO MAKE A FAIR AND REASONABLE APPROACH IN ESTIMATION. EVEN LD. CIT(A) SIMPLY REPRODUCED THE SUBMISSION OF THE ASSESSEE WITHOUT DISCUSSING O R MEETING OUT THE CONTENTION OF THE ASSESSEE AND CONFIRMED THE ACTION OF THE ASSESSING OFFICER, WHICH IS NOT JUSTIFIED. THUS, THE ADDITION ON ACCOUNT OF HOUSEHOLD EXPENSES SHOULD BE ESTIMATED IN REASONABLE MANNER A ND NOT IN THE ARBITRARY MANNER AS HAS BEEN ESTIMATED BY THE AO AN D SUSTAINED BY THE LD. CIT(A). THEREFORE, I AM OF THE VIEW THAT THE ES TIMATION IS ON HIGHER SIDE, ACCORDINGLY, IN ORDER TO MEET AN END TO THE J USTICE, IT WOULD BE FAIR AND REASONABLE IF THE ADDITION ON ACCOUNT OF HOUSEH OLD EXPENSES IS RESTRICTED TO RS.1,00,000/-. I ORDER ACCORDINGLY. SHYAMLAL HOLANI - SMC ITA 219 OF 2016 4 5. IN THE RESULT, THE APPEAL IS ALLOWED PARTLY. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16 TH MAY, 2016. SD/- ( D.T. GARASIA) JUDICIAL MEMBER DATED : 16.5.2016 !VYS! COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR, INDORE
