Jugal Kishore Nuwal, BHILWARA V. ITO, BHILWARA

ITA 44/JODH/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8018 (ITAT-JODHPUR)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 25-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: ARUN KABRA
• Keywords: Income from undisclosed sources
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 44/JU/2012 ASSESSMENT YEAR: 2007-08 SHRI JUGAL KISHORE NUWAL VS. THE INCOME-TAX OFFICE R 8, MAIN SECTOR WARD 2 BHILWARA BHILWARA PAN NO. ABBPN 0380 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ARUN KABRA DEPARTMENT BY : SHRI G.R. KOKANI DATE OF HEARING : 05.10.2012 DATE OF PRONOUNCEMENT : 06.11.2012 ORDER PER HARI OM MARATHA, J.M. THIS APPEAL OF THE ASSESSEE PERTAINING TO ASSESSMEN T YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF LD. C IT(A), AJMER, DATED 28.11.2011. 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS. 82,000/- MADE BY TH E A.O. ON ACCOUNT OF LOW HOUSEHOLD EXPENSES. 3. BRIEFLY STATED, THE FACTS LEADING TO THIS APPEAL ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, T HE A.O. OBSERVED THAT SCRUTINY OF CAPITAL ACCOUNT REVEALED THAT THE ASSESSEE HAD DISCLOSED DRAWINGS AS PER HOUSEHOLD EX PENSES AT RS. 48,000/-. THE ASSESSEE IS A HIGHLY PAID EMP LOYEE AND HAD DISCLOSED SALARY RECEIPTS AT RS. 4,80,000/- AND INCOME FROM INTEREST IN ADDITION TO SALARY. THE A. O. FURTHER OBSERVED THAT WITHDRAWALS FOR A FAMILY OF T HREE PERSONS INCLUDING SCHOOL GOING CHILDREN WAS VERY LO W LOOKING TO THE STATUS OF THE ASSESSEE. HE THEREFOR E, ESTIMATED THE HOUSEHOLD EXPENSES AT RS. 10,000/- PL ANT AND MACHINERY. TOTALING TO RS. 1,20,000/-. THE ASS ESSEE HAD DISCLOSED ONLY RS. 48,000/- AS SUCH, EXCESS EXP ENSES OF RS. 82,000/- ESTIMATED WHICH HAS BEEN INCURRED B Y THE ASSESSEE TO MEET WITH HOUSEHOLD EXPENSES. THE SOUR CE OF EXCESS EXPENSES OF RS. 82,000/- HAS NOT BEEN DISCLO SED AS 3 THE SAME HAS BEEN INCURRED BY THE ASSESSEE OUT OF H IS UNDISCLOSED INCOME EARNED DURING THE YEAR AND INVES TED THE SAME FOR MEETING WITH HIS HOUSEHOLD EXPENSES. THEREFORE, THE A.O. MADE AN ADDITION OF RS. 82,000/ - AS INCOME FROM UNDISCLOSED SOURCES AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. AGGRIEVED, THE AS SESSEE WENT IN APPEAL BEFORE THE LD. CIT(A), WHO CONFIRMED THE SAME. AGGRIEVED FURTHER, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE ENTIRE MATERIAL ON RECORD. TH E LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSE E AND HIS FAMILY WERE PURE VEGETARIANS AND THEIR LIFESTYL E WAS VERY SIMPLE AND ORDINARY. ALL MEMBERS LIVED IN JOI NT FAMILY AND HAVING COMMON KITCHEN AND ARE NOT USED T O ANY HI-FI EXPENDITURE. HE FURTHER SUBMITTED THAT THE S POUSE OF THE ASSESSEE, HIS FATHER AND TWO BROTHERS AND THEIR SPOUSES, WHO WERE INCOME-TAX ASSESSEES HAVE DISCLOS ED INDIVIDUAL WITHDRAWALS TOWARDS HOUSE-HOLD EXPENSES, AND 4 IF THESE ARE TOTALED UP, THE WITHDRAWAL FOR THE JOI NT FAMILY IS QUITE ENOUGH. ACCORDING TO HIM, THE ESTIMATED A DDITION IS UNWARRANTED AND ILLEGAL. HE HAS INVITED OUR ATT ENTION TOWARDS THIS CHART, WHICH REFERS TO INDIVIDUAL WITH DRAWALS IN THEIR RESPECTIVE RETURNS FILE BEFORE THEIR RESPE CTIVE A.OS. IN BHILWARA. THE CHART IS AS UNDER: [RS.] 1. SHRI JAGDISH PRASAD NUWAL AND SMT. KANT NUWAL 78 ,000/- 2. SHRI ANIL NUWAL AND SMT. SANGEETA NUWAL 72,000/ - 3. SHRI JUGAL KISHORE NUWAL AND SMT. MADHU NUWAL 72 ,000/- 4. SHRI MADHU SUDAN NUWAL AND SMT. MAMTA NUWAL 72,0 00/- TOTAL 2,94,000/- THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ABOVE DRAWINGS OF RS. 2,94,000/- FOR A FAMILY OF 13 PERSONS IS SUFFICIENT TO SUPPORT THEM. THE A.O., HIMSELF M ET THEM ALL PERSONALLY. THE ASSESSEE DOES NOT EVEN OWN A F OUR WHEELER AND IS NOT A MEMBER OF ANY CLUB, SO THE ADD ITION MADE ON ADHOC BASIS NEEDS TO BE DELETED. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, WE FIND THAT THE A.O. HAS CONSIDERED THE 5 HOUSEHOLD EXPENSES OF THE ASSESSEE AND HIS FAMILY A T RS. 1,20,000/- HYPOTHETICALLY AND WITHOUT ANY VALID BAS IS. THE LD. CIT(A) HAS NOT CONSIDERED THE DRAWINGS OF RS. 2 4,000/- MADE BY THE ASSESSEES SPOUSE WHO ALSO CONTRIBUTED TO THE KITTY OF HOUSEHOLD EXPENSES OF THE ASSESSEES FAMIL Y. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT TH E A.O. IS NOT JUSTIFIED IN MAKING ADDITION AND THE LD. CIT (A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 82,000/ - WITHOUT ANY BASIS AND DELETE THE SAME. ACCORDINGLY, THE GR OUND TAKEN BY THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON 6 TH NOVEMBER, 2012. SD/- SD/- (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 6 TH NOVEMBER, 2012 VL/- 6 COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR BY ORDER ASSISTANT REGISTRAR ITAT, JODHPUR