ALPESHBHAI RASIKLAL LAKHANI (HUF),AHMEDABAD vs. DY. COMMISSIONER OF INCOME TAX,CIRCLE-6, AHMEDABAD

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ITA 2483/AHD/2015Status: DisposedITAT Ahmedabad14 November 2017AY 2011-123 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 held that without pointing out any specific disproportionate expenditure, the disallowance on account of low withdrawal for household expenses cannot be sustained. The AO was directed to delete the addition.

What were the facts?

The assessee showed monthly withdrawals of Rs. 27,500 for household expenses for a family of four. The Assessing Officer (AO) made an addition of Rs. 1 lakh on account of low withdrawal for household expenses.

What were the issues?

Whether an addition can be made on account of low withdrawal for household expenses without identifying specific disproportionate expenditures.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: SHRI N.K. BILLAIYA & SHRI S. S. GODARA

For Appellant: Shri Ankit Talsania, AR

PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. This appeal by the assessee is preferred against the order of the Ld. CIT(A)-13, Ahmedabad dated 27.07.2015 pertaining to A.Y. 2011-12.

2 ITA No. 2483/Ahd/2015 . A.Y. 2011-12 2. The only grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 1 lakh on account of low withdrawal for household expenses.

3.

The underlying facts in issue show that the assessee has shown withdrawals for household expenses totaling to Rs. 27,500/- per month which comes to Rs. 3,30,000/- per annum for a family of four members which included two school going children. The yearly withdrawals per head is Rs. 82,500/-. There is no adverse finding in the assessment order in relation to any specific expenditure incurred by the assessee or his family members during the year under consideration.

4.

Not pointing out any specific head of expenditure which according to the A.O. was disproportionate to the yearly withdrawals shown by the assessee, any disallowance on account of low withdrawal for household expenses cannot be sustained. We, accordingly direct the A.O. to delete the addition of Rs. one lac.

5.

Appeal filed by the Assessee is allowed.

Order pronounced in Open Court on 14- 11- 2017.

Sd/- Sd/- (S.S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad: Dated: 14/11/2017 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad.

3 ITA No. 2483/Ahd/2015 . A.Y. 2011-12

6.

Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

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