Shri Sharad Kabra, Indore V. The ACIT 1(2), Indore

ITSSA 187/IND/2011

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7492 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 25-04-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 12-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KESHAV SAXENA
• Assessee Lawyers: S S DESHPANDE
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AGWPK4627K I.T (SS) .A.NO S . 181 TO 187 /IND/2011 A.Y S . : 2003 - 04 TO 2009 - 10 SHRI SHARAD KABRA, ACIT, 1(2), 701, BAJ RANG NAGAR, VS INDORE. INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI S.S.DESHPANDE, CA RESPONDENT BY : SHRI KESHAV SAXENA, CIT DR DATE OF HEARING : 25.04 2012 DATE OF PRONOUNCEMENT : 25 . 0 4 .201 2 O R D E R PER R. C. SHARMA, A.M. THESE ARE THE APPEALS FILED BY THE ASSESSEE FOR THE ASSESSMENT YEARS 2003-04 TO 2009-10, IN THE MATTER OF ORDER PASSED U/S 143(3)/153A OF THE INCOME-TAX ACT, 1961. 2. IN ALL THE YEARS, COMMON GRIEVANCE OF THE ASSESSEE RELATES TO ASSESSMENT FRAMED U/S 153A WITHOUT ANY INCRIMINATING MATERIAL FOUND DURING COURSE OF SEARC H. ON -: 2: - 2 MERIT, THE ASSESSEE IS AGGRIEVED FOR THE ADDITION M ADE ON ACCOUNT OF ESTIMATED HOUSE HOLD EXPENSES/WITHDRAWAL S. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN EXECUTIVE IN ZOOM GROUP OF INDUSTRIES HEADED BY SHR I VIJAY CHOUDHARY AND HIS WIFE SMT. MANJARY CHOUDHARY. A SE ARCH U/S 132 WAS CONDUCTED ON 04.02.2009 AT VARIOUS BUSI NESS PREMISES OF THE GROUP INCLUDING THAT OF THE ASSESSE E. 4. WHILE FRAMING ASSESSMENT U/S 143(3)/153A, THE ASSESSING OFFICER MADE ADDITION BY ESTIMATING HOUSE HOLD EXPENSES OF THE ASSESSEE. IN THE ASSESSMENT YEAR 20 03-04, THE ASSESSING OFFICER HAS ESTIMATED HOUSE HOLD EXPENSES AT RS. 15,000/- PER MONTH AND IN EVERY SUBSEQUENT YEAR, TH E SAME WAS INCREASED BY RS. 12,000/- PER ANNUM. AFTER GIVI NG CREDIT FOR THE WITHDRAWAL SO MADE BY THE ASSESSEE, THE ASS ESSING OFFICER MADE AN ADDITION ON ACCOUNT OF LOW WITHDRAW ALS. CONTENTION OF THE ASSESSEE WAS THAT HOUSE HOLD EXPE NSES CONTRIBUTED BY HER WIFE HAS NOT BEEN TAKEN CARE OF. BEFORE THE CIT(A), IT WAS ALSO SUBMITTED THAT SINCE THE INCOME OF THE WIFE WAS BELOW TAXABLE LIMIT, THEREFORE, NO RETURN OF IN COME WAS -: 3: - 3 FILED. HOWEVER, THE CIT(A) AFTER GIVING RELIEF OF R S. 5663/- IN THE ASSESSMENT YEAR 2003-043, RS. 23,705/- IN THE ASSES SMENT YEAR 2005-06 AND RS. 89,372/- IN THE ASSESSMENT YEA R 2009- 10, SUSTAINED THE ADDITION MADE BY THE ASSESSING OF FICER ON ACCOUNT OF HOUSE HOLD EXPENSES FOR WHICH THE ASSESS EE IS IN APPEAL BEFORE US IN RESPECT OF ALL THE YEARS UNDER CONSIDERATION. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AN D FOUND FROM RECORD THAT DURING THE COURSE OF SEARCH, NO IN CRIMINATING MATERIAL WAS FOUND TO INDICATE THAT THE ASSESSEE HA S INCURRED ANY EXPENDITURE ON ACCOUNT HOUSE HOLD WHICH HAS NOT BEEN TAKEN CARE OF. ADDITION WAS MADE BY THE ASSESSING OFFICER PURELY ON ESTIMATION BASIS. THE ASSESSING OFFICER S TATED THAT THE ASSESSEE WAS LIVING WITH HIS WIFE AND TWO CHILD REN, THEREFORE, HE ESTIMATED THE HOUSE HOLD EXPENSES OF RS. 15,000/- PER MONTH AND ACCORDINGLY, ADDITION WAS MA DE AFTER GIVING CREDIT FOR THE WITHDRAWALS SHOWN BY THE ASSE SSEE. WE FOUND THAT CONTENTION OF THE ASSESSEE TO THE EFFECT THAT HIS WIFE WAS ALSO HAVING INCOME FROM TUITION, WAS NOT CONSID ERED. -: 4: - 4 KEEPING IN VIEW THE FAMILY MEMBERS AND THE STANDARD OF LIVING AND ALSO THE FACT THAT CAR EXPENSES OF THE ASSESSEE WERE BORNE BY THE COMPANY IN WHICH HE WAS WORKING AS EXECUTIVE , IT WILL BE REASONABLE TO ESTIMATE HOUSE HOLD EXPENDITURE AT RS. 10,000/- PER MONTH IN ASSESSMENT YEAR 2003-04 WITH AN INCREASE OF RS. 1,000/- FOR EVERY SUBSEQUENT YEARS. IT WILL BE APPROPRIATE TO GIVE CREDIT FOR THE HOUSE HOLD EXPEN SES BEING CONTRIBUTED BY HER WIFE TO THE EXTENT OF RS. 24,000 /- FOR ASSESSMENT YEAR 2003-04 AND THEREAFTER INCREASE OF RS. 500/- PER MONTH FOR EVERY SUBSEQUENT YEARS. THUS, FOLLOWI NG CREDIT IS TO BE GIVEN OUT OF TOTAL ESTIMATION OF HOUSE HOLD E XPENSES ON BEHALF OF WIFE OF ASSESSEE :- ASSESSMENT YEAR AMOUNT OF CREDIT (RS.) 2003 - 04 24,000/ - 2004 - 05 30,000/ - 2005 - 06 36,000/ - 2006 - 07 40,000/ - 2007 - 08 46,000/ - 2008 - 09 52,000/ - 2009 - 10 58,000/ - 6. ACCORDINGLY, THE ASSESSING OFFICER IS DIRECTED TO RECOMPUTE THE ADDITION TO BE MADE ON ACCOUNT OF HOU SE HOLD -: 5: - 5 EXPENSES AFTER GIVING CREDIT FOR THE WITHDRAWALS SH OWN BY THE ASSESSEE AND ALSO CONTRIBUTION OF WIFE TOWARDS HOUS E HOLD EXPENSES AS MENTIONED HEREINABOVE. THE BALANCE IS T O BE SUSTAINED. NEEDLESS TO MENTION THAT THE RELIEF GIVE N BY THE LD.CIT(A) IN THE ASSESSMENT YEAR 2003-04, 2005-06 A ND 2008- 09 IS TO BE RETAINED AS IT IS, SINCE DEPARTMENT IS NOT IN APPEAL BEFORE US, AGAINST THE SAME. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED IN PART IN TERMS INDICATED HEREINABOVE. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 25 TH APRIL , 2012. (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 25 TH APRIL, 2012. CPU* 254