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.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is preferred against the order of the CIT(A)-27, New Delhi dated 28.03.2019 pertaining to A.Y.20 13-14.
2. The solitary grievance of the assessee is that the CIT(A) erred in confirming the action of the AO in making the addition of Rs.4.80 lacs on account of house hold drawings.
3. Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the assessee was asked to furnish details of drawings made for house hold purposes and its justification keeping in view the constitution of family and standard of living. On receiving no plausible reply the AO went on to estimate the house hold drawings at Rs.40,000/- per month and made addition of Rs. 4.80 lacs.
4. Assessee carried the matter before the CIT(A) but without any success.
5. Before us the Counsel for the assessee drew our attention to the details furnished before the CIT(A) and explained the total expenses / withdrawal were as under :-
