Case Law Details
Late Sh. Brij Kishoare Vs DCIT (ITAT Delhi)
Introduction: The case of Late Sh. Brij Kishoare Vs DCIT brought before the Income Tax Appellate Tribunal (ITAT) Delhi centered around a dispute over an addition of Rs. 4.80 lacs on account of household drawings by the Assessing Officer (AO). The appellant contested the addition, which had been upheld by the CIT(A).
Analysis: During the scrutiny assessment proceedings, the AO made an estimated addition to the household drawings as the assessee did not provide a plausible reply to justify the expenses considering their family’s constitution and standard of living. Despite the appeal to the CIT(A), the addition was upheld, leading to further appeal to the ITAT.
The counsel for the assessee outlined detailed expenses totaling Rs. 396735, highlighting the fact that the assessee, a senior citizen, was living alone with his wife and had no other liabilities. Although the CIT(A) considered additional evidence in the form of a bank statement and called for a remand report from the AO, the addition was still confirmed.
The ITAT, upon thoughtful consideration, found no merit in the addition made by the AO given the age of the assessee and the nature of the expenses provided. It was determined that the expenses paid by cheque for electricity, gas, and medical expenses were reasonable, and no adverse inference was drawn from these details. AO is directed to delete the addition of Rs.4.80 lacs. The appeal of the assessee is accordingly allowed.
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