SUNNY YADAV,NOIDA vs. DCIT, CENTRAL CIRCLE , NOIDA

ITA 3331/DEL/2018Status: DisposedITAT Delhi06 May 2026AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the assessee had sufficient funds from disclosed rental income to meet household expenses. Therefore, the addition made by the AO on account of low withdrawals was not sustainable.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 1,20,000/- for alleged low household withdrawals, estimating Rs. 10,000/- per month as expenses met from unexplained sources. The assessee argued that he was single, lived with parents, and had disclosed significant cash rental income which he used for his expenses.

What were the issues?

Whether the addition on account of estimated household expenses from unexplained sources is justified when the assessee has disclosed sufficient income to meet such expenses.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI YOGESH KUMAR US & SHRI SANJAY AWASTHI

For Appellant: Shri Somil Agarwal, Advocate &, Ms. Shilpa Gupta, CA

Hearing: 06.05.2026

आदेश /O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

This appeal arises from order dated 18.04.2018, passed by Ld. CIT(A)-IV, Kanpur, u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”). In this case, the main issue revolves around an addition of Rs.1,20,000/- on account of alleged low household withdrawals. It is seen that the assessee has also challenged the service of notice u/s 143(2) of the Act but has decided not to press the connected two grounds of appeal (GOAs 1 & 2).

ITA No. 3331/Del/2018 SUNNY YADAV 1.1 The Ld. AO found that the assessee had not made any withdrawal for household expenses and thereafter estimated Rs.10,000/- per month as expenses met out of alleged unexplained sources. The Ld. CIT(A) confirmed this addition. Thereafter, the aggrieved assessee has approached the ITAT, where ground nos. 3 & 4 challenge this action of Ld. CIT(A).

Before us the Ld. AR argued that at that point of time the assessee was single and living with his parents and also the assessee was having rental income which was duly disclosed in the return of income, and this rental income was being received in cash only. The aggregate rental income in cash for the year under consideration was Rs.2,28,000/-. It was the submission that the assessee was using this income to support himself.

2.1 The Ld. DR relied on the orders of the authorities below.

We have considered the rival submissions and have gone through the documents before us. It is clear that the facts and circumstances of the case indicate that the assessee was having sufficient funds to meet household expenses and therefore, we agree with the contention of Ld. AR that no addition on account of low withdrawals is possible in this case. Accordingly, the impugned addition is directed to be deleted.

In the result, appeal is allowed.

ITA No. 3331/Del/2018 SUNNY YADAV Order pronounced in the open court on 06.05.2026

Sd/- Sd/- (YOGESH KUMAR US) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.05.2026 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI

Sr. No. Particulars Date 1 Date of dictation of Tribunal Order 21.04.2026 2 Date on which typed draft Tribunal Order is placed before the Dictation 22.04.2026 Member 3 Date on which typed draft Tribunal Order is placed before the other Member 06.05.2026 (in the case of DB) 4 Date on which the approved draft Tribunal Order comes to the Sr. P.S. /P.S. 06.05.2026 5 Date on which the fair Tribunal Order is placed before the Dictating Member 06.05.2026 for sign 6 Date on which the fair Order is placed before the other Member for sign (in 06.05.2026 the case of DB) 7 Date on which the signed order comes back to the Sr. P.S. /P.S for uploading 06.05.2026 on ITAT website 8 Date of uploading, if not, reason for not uploading 06.05.2026 9 Date on which the file goes to the Bench Clerk 06.05.2026 10 Date on which order goes for xerox 11 Date on which the file goes for endorsement 12 Date on which the file goes to the Superintendent/O.S. for checking 13 Date on which the file goes to the Assistant Registrar for signature on the order 14 Date on which the file goes to dispatch section for dispatch the Tribunal Order 15 Date of dispatch of order 16 Date on which file goes to Record Room after dispatch the order

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